China fines GM venture $29m for ‘monopolistic pricing’

China will fine US automaker General Motors Co.’s joint venture 201 million yuan ($29 million) for monopolistic pricing, state television reported on Friday, ending speculation after an official warned of penalties against a US carmaker.
Shanghai’s pricing regulator said 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 e-mailed 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.”
SAIC did not immediately respond to a request for comment.
The fine follows comments by US President-elect Donald Trump questioning the “One China” policy and his naming of Peter Navarro, a hard-liner on trade with China, as a trade adviser, although there is no evidence that the penalty is a form of retaliation.
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 behavior, 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 of 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.
Beijing cautions firms
China told its companies on Friday they need to pay attention to the latest UN sanctions on North Korea, especially those related to coal, to avoid any unnecessary economic losses.
The UN Security Council imposed new sanctions on North Korea last month aimed at cutting its annual export revenue by a quarter, after Pyongyang carried out its fifth and largest nuclear test so far in September.
The council unanimously adopted a resolution to slash North Korea’s exports of coal, its biggest export item, by about 60 percent with an annual sales cap of $400.9 million, or 7.5 million metric ton, whichever is lower. The US-drafted resolution also bans North Korean copper, nickel, silver and zinc exports — and the sale of statues. Pyongyang is famous for building huge, socialist-style statues, which it exports mainly to Africa.
China’s Commerce Ministry said in a statement on its website that “relevant companies” should pay close attention to the sanctions and restrictions, especially on coal.
“Understand the United Nations circular about North Korean coal exports, make preparations in advance and rationally arrange imports to avoid unnecessary losses,” it said.
The ministry also reminded companies about the ban on imports of copper, silver, the other metals and statues, but imports, which had already arrived in China would not be affected.

Source: Arab News