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China fines GM venture US$29m for monopolistic pricing: state TV
[BEIJING] China will fine US automaker General Motors Co's joint venture 201 million yuan (S$42 million) for monopolistic pricing, state television reported on Friday, ending speculation after an official forewarned of penalties against a US automaker.
Shanghai's pricing regulator said that it would fine GM's venture with China's largest automaker SAIC Motor Corp Ltd for setting minimum prices on certain Cadillac, Chevy and Buick models, according to China Central Television. "GM fully respects local laws and regulations wherever we operate," the US automaker said in an emailed statement. "We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter."
The fine follows on comments by US President-elect Donald Trump questioning the "One China" policy and his naming of Peter Navarro, a hardliner on trade with China, as a trade advisor.
An official at the National Development Reform Commission on Dec 14 told state-owned China Daily that the commission would fine a US automaker for monopolistic behaviour, sending GM and Ford Motor Co shares skidding.
Auto industry sources have told Reuters the investigation was already underway before Trump's recent comments, although it has raised fears that China could be seizing on the case to send a shot across the bow at the incoming US administration.
The penalty is the latest against automakers after the commission began investigations in 2011, with Audi AG, Daimler AG's Mercedes-Benz, Toyota Motor Corp , and one of Nissan Motor Co Ltd's joint ventures previously being targeted.