China’s market regulation authorities announced the government would no longer endorse “well-known trademarks” and other brands.
Zhang Mao, head of the State Administration for Market Regulation (SAMR), said authorities would not award famous trademarks to enterprises and only maintain a ‘blacklist’ of companies through its enterprise credibility system.
The move reveals the government's efforts to interfere less in the consumer market, read an editorial in the Yanzhao Metropolis Daily.
The market and consumers should instead determine the value of a trademark, not one or several departments, it read. The practice also violates market laws by misleading consumers and creates unfair competition in the market.
Originally, the appraisal of “well-known trademarks” was intended to provide legal protection to enterprises.
However, businesses and authorities have since used it as a tool to seek preferential policies, resulting in local protectionism and other illegal practices.