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Tetra Pak, the world?s largest liquid food processor and packaging manufacturer, is among the multinational companies that were accused by the Chinese government of engaging in anti-competitive activities, in order to eliminate competition in their respective markets. Concurrently, the Chinese government has put forth a plan to roll out a new antitrust law in late 2005, in order to set up a fair market system in line with its goal to transform itself into a market economy. The new law attempts to rectify the vagueness of China?s pre-existing competition policy. While it is still hard to predict the impact of the new law on companies operating in China, it is evident that companies, in particular foreign markets, should take guard against possible lawsuits in the future, as they are likely to be closely scrutinised by the government. This case study looks at the different aspects of China?s antitrust policy, and how companies should adapt to China?s changing legal framework?