Amid the massive economic war between China and the US, Ford is fined in China. On Wednesday, a Chinese antitrust regulator announced a fine of $25 million on the main Joint Venture unit of Ford in the country. This is the latest instance of action on an American company in China.
Changan Ford, equally owned by a Chinese company and Detroit was fined only recently. This comes right after the end of trade talks in Washington and Beijing. This began with Trump administration banning/ blacklisting Huawei.
The Chinese smartphone and telecommunications equipment provider has been barred from selling to American technology companies. Furthermore, the company has been blacklisted from offering vital software, microchips, and other components, until further notice. After that, China, last week, said that it will create a list of “unreliable” foreign companies and of those companies that harm the people and interests of Chinese firms. However, that statement was not clarified with specifications.
Apart from this, one of the biggest companies in America are already feeling the pressure from the Chinese is FedEx. As per reports, Beijing is at present investigating the company over some Huawei packages which were to sent to addresses in Asia. According to FedEx, such deliveries were erroneous misrouting.
However, it is not clear whether the fine on Changan Ford is a backlash of the already bad economic war or not. As per the government and the State Administration for Market Regulation, Changan Ford is being fined because it set out minimum prices for the dealers, which prohibited the dealers from setting their own prices and deprived them of autonomy in the market.
Chinese regulators have, however, acted in a similar fashion against other automobile dealers in the past. Furthermore, other industries have also faced such charges and fines.