China fines GM unit $29 million for 'price-fixing'

[sankar]

China fines GM unit $29 million for 'price-fixing'
By AFP

PUBLISHED: 05:35 GMT, 24 December 2016 | UPDATED: 05:35 GMT, 24 December 2016

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Beijing has fined the Chinese unit of General Motors nearly $29 million for "infringing on the rights of consumers and its competitors" via price-fixing, Shanghai authorities said.

SAIC-GM -- a joint venture between the American company and the state-owned SAIC Motor Corporation, China's biggest automaker by production volume -- has been ordered to cough up 201 million yuan ($28.9 million), approximately four percent of its mainland sales last year, Shanghai's top development and economic reform body said on their website in a Friday statement.

"The fine is fair. We just aim to improve market order," the state-owned China Daily newspaper cited Xu Xinyu, the official in charge of the GM investigation, as saying.

A woman stands outside a Buick showroom in Beijing on December 15, 2016 ©GREG BAKER (AFP/File)

"SAIC-GM will respect the views of the National Development and Reform Commission," a spokesperson from the company said Friday, according to Chinese website Today's Economic News.

It is the second time in weeks China has slapped a multi-million dollar fine on a US company for alleged monopolistic pricing behaviour, the paper added.

Earlier this month, the country's top economic regulator issued a 119 million yuan ($17.1 million) fine to Medtronic, an American supplier of high-end medical devices.

As of Friday, China has issued 2.25 billion yuan in fines to automakers since 2014, according to the China Daily.

The penalty comes in the midst of a war of words between US President-elect Donald Trump and Chinese media, after the billionaire Republican businessman suggested he may reject the One China policy unless Beijing makes concessions on trade and other matters.

Trump, who takes office on January 20, has also repeatedly threatened to slap 45 percent tariffs on Chinese exports to the US.

He has picked outspoken China critic Peter Navarro to head the White House National Trade Council, a new office that will oversee trade and industrial policy -- leading Chinese media reports on Friday to state that Beijing ought to prepare for a potential trade war.

http://www.dailymail.co.uk/wires/af...na-fines-GM-unit-29-million-price-fixing.html

 

[AndrewJin]

Should be 2.9 billion, save their face?

 

[TaiShang]

China fines GM unit $29 million for 'price-fixing'
By AFP

PUBLISHED: 05:35 GMT, 24 December 2016 | UPDATED: 05:35 GMT, 24 December 2016

• e-mail
  

Beijing has fined the Chinese unit of General Motors nearly $29 million for "infringing on the rights of consumers and its competitors" via price-fixing, Shanghai authorities said.

SAIC-GM -- a joint venture between the American company and the state-owned SAIC Motor Corporation, China's biggest automaker by production volume -- has been ordered to cough up 201 million yuan ($28.9 million), approximately four percent of its mainland sales last year, Shanghai's top development and economic reform body said on their website in a Friday statement.

"The fine is fair. We just aim to improve market order," the state-owned China Daily newspaper cited Xu Xinyu, the official in charge of the GM investigation, as saying.

A woman stands outside a Buick showroom in Beijing on December 15, 2016 ©GREG BAKER (AFP/File)

"SAIC-GM will respect the views of the National Development and Reform Commission," a spokesperson from the company said Friday, according to Chinese website Today's Economic News.

It is the second time in weeks China has slapped a multi-million dollar fine on a US company for alleged monopolistic pricing behaviour, the paper added.

Earlier this month, the country's top economic regulator issued a 119 million yuan ($17.1 million) fine to Medtronic, an American supplier of high-end medical devices.

As of Friday, China has issued 2.25 billion yuan in fines to automakers since 2014, according to the China Daily.

The penalty comes in the midst of a war of words between US President-elect Donald Trump and Chinese media, after the billionaire Republican businessman suggested he may reject the One China policy unless Beijing makes concessions on trade and other matters.

Trump, who takes office on January 20, has also repeatedly threatened to slap 45 percent tariffs on Chinese exports to the US.

He has picked outspoken China critic Peter Navarro to head the White House National Trade Council, a new office that will oversee trade and industrial policy -- leading Chinese media reports on Friday to state that Beijing ought to prepare for a potential trade war.

http://www.dailymail.co.uk/wires/af...na-fines-GM-unit-29-million-price-fixing.html

This year the US damaged several of China's business interests, most of them strongly politically charged.

It is refreshing to see that China won't be following up the ancient "turn the other cheek" ethics, but, rather, "slap back" and "slap back harder."

If the US continues with hostile trade policies, their interests will be further damaged and Trump may have to import lots of low cost immigrants to keep the US manufacturing alive.

@Shotgunner51 , @grey boy 2

 

[sankar]

This year the US damaged several of China's business interests, most of them strongly politically charged.

It is refreshing to see that China won't be following up the ancient "turn the other cheek" ethics, but, rather, "slap back" and "slap back harder."

If the US continues with hostile trade policies, their interests will be further damaged and Trump may have to import lots of low cost immigrants to keep the US manufacturing alive.

@Shotgunner51 , @grey boy 2

China depends mostly on US market and US depends on Cheap products from China. Both cannot win a trade war. It will be stalmate

 

[艹艹艹]

Cheap products from China

Why not from India?
Are the products in India very expensive?

 

[TaiShang]

China depends mostly on US market and US depends on Cheap products from China. Both cannot win a trade war. It will be stalmate

Actually not so cheap products from China. BYD EV-bus is the most expensive among its peers - of course, it is also the most advanced.

 

[sankar]

Actually not so cheap products from China. BYD EV-bus is the most expensive among its peers - of course, it is also the most advanced.

Don't get offended. I mean to say Quality products with cheap price.

Why not from India?
Are the products in India very expensive?

Compare to China, Yes, India is expensive by 20%. India is Cheaper than China only in Medicines it seems

 

[艹艹艹]

Compare to China, Yes, India is expensive by 20%

It looks like your products are better than Chinese ones.

 

[TaiShang]

Don't get offended. I mean to say Quality products with cheap price.

Compare to China, Yes, India is expensive by 20%

It ranges from low value added to high value added industrial products. Very little services exports, for instance, which is a serious short coming.

I think US protectionism arose when China began to insert itself into high value added export dominated traditionally by the US.

As long as you export them low value added, they won't complain and trade deficit won't be a problem - because they can simply print dollar and pay for it.

But high value added really hurts them. You will see it for yourself if you start to target, say, their dominance in office software.

 

[sankar]

It ranges from low value added to high value added industrial products. Very little services exports, for instance, which is a serious short coming.

I think US protectionism arose when China began to insert itself into high value added export dominated traditionally by the US.

As long as you export them low value added, they won't complain and trade deficit won't be a problem - because they can simply print dollar and pay for it.

But high value added really hurts them. You will see it for yourself if you start to target, say, their dominance in office software.

US protectionism was there for decades. Only country so far resisted US is China. That's why I did mentioned this So Called Trade War will meet stalmate either way.

It looks like your products are better than Chinese ones.

Don't be so cruel. I am trying to be honest here.
Anyway certainly few of our products are better than Chinese. For example : Scissors and Knife - we find the life of the sharpness is far less compared to Indian products. It has more duration of Sharpness and does have a long life.

 

[TaiShang]

Compare to China, Yes, India is expensive by 20%. India is Cheaper than China only in Medicines it seems

We need actual data for this.

For instance, we may compare an export product from a similar segment by XCMG and Mahindra & Mahindra and see.

 

[sankar]

We need actual data for this.

For instance, we may compare an export product from a similar segment by XCMG and Mahindra & Mahindra and see.

You're right. But no way to compare it at present stages. India seems ahead in few segments like Software, Medicines, Milk, Raw Steel, etc.. Infact very few.
India ofcourse need to grow itself to compare with China in most of the Segments.

 

[艹艹艹]

US protectionism was there for decades. Only country so far resisted US is China. That's why I did mentioned this So Called Trade War will meet stalmate either way.

Do you know ，How much do American companies earn in a year in China?
Answer: $ about 500+Billion
You should not always consider the transaction of goods

 

[sankar]

Do you know ，How much do American companies earn in a year in China?
Answer: $ about 500+Billion
You should not always consider the transaction of goods

Yes,. In reality American needs Chinese Goods and their Investments in China needs to saved. China needs American market share to keep growth rate stable as they did all these years.

 

[艹艹艹]

Anyway certainly few of our products are better than Chinese.