A Japanese ANA aircraft, registration JA900A, descends into Shanghai Hongqiao International Airport on May 2, 2025, during the May Day holiday. Photo: VCG

China's State Administration for Market Regulation (SAMR) announced that it has conditionally approved, in accordance with the law, All Nippon Airways Co (ANA)'s acquisition of equity in Nippon Cargo Airlines, according to the official social media account of the SAMR on Tuesday.

This decision safeguards fair competition in the China-Japan air cargo service market, ensures the smooth flow of the "main artery" of China-Japan economic and trade exchanges, and is of great significance to the stability of regional industrial and supply chains, said the SAMR.

The case involves the merger of two major Japanese airlines in the China-Japan air cargo service market. During its review, the SAMR focused on assessing the potential impact of the transaction on competition in the air cargo service market between China and Japan. The review found that ANA and Nippon Cargo Airlines hold a relatively high combined market share in the China-Japan air cargo service market, and the transaction could adversely affect competition on the air cargo routes between the two countries, according to the SAMR.

To ensure fair competition in the relevant market after the transaction, ANA made a number of commitments, including continuing to fulfill existing cargo ground handling agreements, not refusing to renew relevant agreements, providing ground handling services to new entrants, and transferring certain flight slots, said the SAMR, noting that these restrictive conditions help maintain the openness and competitiveness of the China-Japan air cargo service market and guard against the risk of market monopolization.

"A reliable and efficient supply chain holds major strategic value, not only for China but also for broader China-Japan-South Korea cooperation, and is a highly valuable asset," Jiao Xinwang, director of the China Manufacturing Think Tank, told the Global Times on Tuesday, commenting on the significance of the decision by the SAMR.

Jiao noted that the smooth operation of the China-Japan supply chain is a strong positive factor for the sustainable development of the regional loop among China, Japan and South Korea. Especially as external circulation faces mounting challenges, ensuring the smooth flow of goods within the region has become increasingly critical.

"As a key player in the global restructuring of supply chains, we must work to ensure the stability of regional industrial and supply chains while maintaining healthy market competition and smooth circulation," Jiao said.

Overall trade between China and Japan has maintained growth so far this year. In the first five months, bilateral trade reached 899.33 billion yuan ($125.53 billion), a year-on-year increase of 2.3 percent, according to China's General Administration of Customs. Of that total, China's exports to Japan amounted to 461.82 billion yuan, up 5.6 percent from the same period last year.

As two major economies in East Asia, China and Japan enjoy close economic and trade ties, with air cargo serving as a vital link between the two. The SAMR said that the conditional approval of this case fully reflects the need to safeguard market competition and protect consumer interests, and demonstrates the Chinese antitrust authority's attention to the international air cargo service market.

The SAMR pledged to carry out effective supervision and enforcement of the case to ensure that the relevant commitments are fully implemented. The market regulator said that it will continue to uphold fair competition in the China-Japan air cargo service market and promote the healthy development of the air logistics industry.