Chen also repeated that the acquisition would be bad for competition and limit consumer choice.

"We still hope that both Coca-Cola and Huiyuan can have sound development in China," Chen said.

Ministry of Commerce spokesman Yao Jian told Xinhua News Agency that the decision to reject the deal would not affect China's policy to attract foreign investment. Yao said the ministry made the decision "on the basis of facts found through sufficient investigation and research and strictly in line with the country's Anti-Monopoly Law."

"The purpose of the examination is to maintain market competition, protect consumers and safeguard the public interests," he said.

Under the requirements of the Anti-Monopoly Law, the State Council established the Anti-Monopoly Commission to work out anti-monopoly policies and coordinate the anti-monopoly work. The Anti-Monopoly Bureau was established under the Ministry of Commerce, which is responsible for anti-monopoly examinations and helping Chinese companies respond to anti-monopoly lawsuits in foreign countries. The Department of Price Supervision under the National Development and Reform Commission handles price monopoly activities. The Anti-Monopoly and Anti-Unfair Competition Enforcement Bureau under the State Administration for Industry and Commerce enforces anti-monopoly agreements and addresses abuses pertaining to market control status or administrative power that seek to eliminate or restrict competition.

Chen said the ministry has approved many other foreign applications for acquisitions in China since the Anti-Monopoly Law took effect last August 1.

According to a Xinhua News Agency report, data from the Ministry of Commerce show that a total of 40 anti-monopoly applications from companies under ministry review have been filed since August 2008. Of those, the ministry has accepted 29 applications and issued decisions on 24 of them. Among the 24 decided cases, 23 were approved unconditionally and the remaining one was approved with additional restrictive conditions after the applicant had proposed further solutions and commitments to competition.