Home Economy China Crackdown On US Companies Escalates – Ford Fined For Anti-Trust Violations

China Crackdown On US Companies Escalates – Ford Fined For Anti-Trust Violations

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Just when we thought it was safe to buy the f**king dip amid comments from China that implied an easing of tensions (despite Chinese media denying any such softening), news overnight confirmed tensions with US firms is escalating.

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Just days after China said that it’s investigating FedEx for “wrongful” deliveries, a move framed by the state news agency as a warning by Beijing, Bloomberg reports that China has fined Ford’s main joint venture in the country for antitrust violations.

According to a statement on the State Administration for Market Regulation’s website, Changan Ford Automobile, the 50:50 venture between Michigan-based Ford and Chongqing Changan Automobile, must pay a penalty of 162.8 million yuan (US$23.6 million) – equivalent to 4 per cent of the venture’s annual sales in Chongqing – for a business practice that restricted retail prices since 2013.

“It’s hard to see [this fine] as not related [to US tensions],” said Andrew Polk, co-founder of research firm Trivium China in Beijing. “At this stage I think our baseline assumption should be that there are no coincidences.”

In an emailed statement, Changan Ford said it will accept the fine imposed by China’s anti-monopoly authority agreeing to further regulate its operations in China and safeguard a free, fair market competition environment.

The fine adds to Ford’s woes in China as sales at its Changan venture dropped 54 percent in 2018.

This latest move follows the Trump administration’s ban on business with telecommunications giant Huawei and China’s threat to blacklist foreign firms that damage domestic companies’ interests.

It would seem this trade war is anything but de-escalating and once President Trump returns from Europe, we suspect the rhetoric will worsen.

via zerohedge

5 COMMENTS

  1. Pull the business out of China altogether, move it to a US state, hire the people locally to work there (a win-win for our employment and brings Ford back here where it belongs) and screw the Chinese cheap labor market. Let’s be honest, the only reason Ford is there in the first place is cheap labor, if this joint business lost as much as the article implies, what kind of a ROI is that anyway?

  2. Henry Ford is rolling over in his grave. Since when are communism and capitalism compatible? The Ford monarchy desire for a larger coffer placed factories in china using cheap labor. It boils down to a personal gain and to hell with what is right and correct.

  3. The reason for this is that #44 = Mr. Barry or is it Barak Hussein Soetoro’s alias Soebarkah’s alias Dunham’s alias Obama’s Fault for giving The USA’s Companies to other countries! Now that China is mad, because under a New US Sherriff, The Legally Elected US President Mr. Donald John Trump is bringing all of those Jobs back to the USA!

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