The draft of China's first anti-monopoly law has been submitted to the national legislature for its deliberation after more than 10 years in its composition.

The aim of the law is to protect fair competition, prevent and check monopolistic behavior and maintain a regulated market place.

The 22nd session of the 10th National People's Congress (NPC) Standing Committee will consider the draft when it meets from June 24 to 29.

The draft law would help open some markets wider to foreign competition, while helping to prevent foreign companies from acquiring existing Chinese monopolies to safeguard national economic security.

A special anti-monopoly commission, which consists of officials and experts, will be set up to deal with anti-monopoly issues under the draft law.

Cao Kangtai, director of the Legislative Affairs Office of the State Council, on Saturday told the legislature that China needed an anti-monopoly law to ensure fair competition and to regulate market order.

"Currently, some monopolies wield their dominant status in the market to fix prices, pressure suppliers, engage in enforced package sales, and establish cartels, divide the market and limit production with other major business operators," Cao said.

"Their behavior severely affects fair competition and infringes the legitimate rights of consumers and small business operators.

"With frequent domestic and overseas mergers and restructuring, monopolies are forming in some areas and in certain industries in China. This is why and anti-monopoly law is essential."

The draft law, with eight chapters and 56 provisions, bans monopolistic agreements, such as cartels and other forms of collusion, and provides for investigation and prosecution of monopolistic practices, while protecting monopolistic agreements that promote innovation and technological advance.

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