Chinese Mandarins have denied that they are planning to take Microsoft to the cleaners for breaking anti-trust rules.

The rumors were widely reported earlier this week, but China’s intellectual property bureau issued a formal denial this morning. Of course, what the denial did not say was that a new anti-monopoly law will take effect August 1 that has a loosely defined and low threshold for the government to initiate an official investigation.

It means that Microsoft will be highly vulnerable to such a complaint and will almost certainly be investigated. It is also likely to be the first target that Beijing will test the teeth of its new anti-monopoly law.