Abstract

The ambiguous relationship between Article 14 and Article 15 of AML has begun to produce many problems in China. Most dramatically, different understandings of the relationship have resulted into contradictory decisions between the courts and the NDRCL. This article is aimed to shed some light on this issue. It is submitted that although the courts’ position matched better the relevant economics theories, it is not compatible with the AML; in comparison, the NDRC’s practice, though initially looking more intrusive and rigid, as a matter of fact comply with the AML.

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