China will Punish for American Automobile Manufacturers’ Monopoly?

On December 14, foreign ministry held a regular press conference., according to the news on the foreign ministry website, a reporter asked questions at the meeting: "it is reported that the national development and reform commission official said Chinese side will punish the U.S. auto manufacturers for monopolizing market. Can you confirm and provide more details? Somebody thinks, this is Chinese retaliation against elected President of the United States Trump’s Taiwan-related speech. What do you think about it?"

Foreign ministry spokesman GengShuang responded, "I can't provide you with the details, if you are interested, you can ask the competent department. As a principle, we repeatedly stressed that China welcomes foreign enterprises to invest in China, including U.S. companies, at the same time they also must abide by Chinese laws and regulations, it is very clear."

Today, the China Daily quoted the talk of a senior officials and pointed out that China will punish a U.S. auto maker's monopoly behavior recently, but which is not named.

According to the report, Zhang Handong, bureau of the national development and reform commission, the price supervision and anti-monopoly, said that punish the unnamed company is the authorities to strengthen anti-monopoly supervision and expand the scope of review. The purpose is to promote fair competition. Zhang Handong also said that they will always adopt the same regulation for domestic and foreign companies.

Zhang Handong pointed out that according to the survey, the American auto companies indicates a dealer fixed price since 2014. The penalty for the carmaker just are the specific embodiment of Chinese government’s antitrust policy for foreign auto companies and dealers.