REUTERS-China will fine U.S.
automaker General Motors Co's (GM.N)
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 U.S. carmaker.
Shanghai's pricing
regulator said it would fine GM's venture with China's largest automaker SAIC
Motor Corp Ltd (600104.SS)
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 U.S.
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."
SAIC did not
immediately respond to a request for comment.
The fine follows
comments by U.S. President-elect Donald Trump questioning the "One
China" policy and his naming of Peter Navarro, a hardliner 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 U.S. automaker for monopolistic behavior,
sending GM and Ford Motor Co (F.N)
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 U.S. administration.
REUTERS
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