China's price regulatory and anti-trust authorities have been closely watching excessively high prices of cars produced by foreign companies and joint-ventures for over two years, sources in the National Development and Reform Commission.
Car industry could be the latest target of a campaign launched by the Chinese government against price-fixing, monopoly and other malpractices by multinational companies. Earlier this month, the NDRC fined six foreign milk powder makers over foul play. The monitoring, and potential investigation, aims at protecting consumers' interests and ensuring full and open competition in the Chinese market. Facing a diligent watchdog and a better regulated market here, foreign firms now need to do some homework to adapt to the new environment.
In parallel with the pricing-regulatory measures, China is continuing the efforts to further open up to foreign businesses. Two fully assembled foreign luxury cars were imported Monday at Beijing Capital International Airport, which becomes the first and only airport in China to provide airfreight service for finished cars. It will give foreign car makers another option to export cars to China, helping them save time and cut costs.
All in all, the changes in the Chinese market are in the interests of foreign companies, for which an advisable choice is to alter their market practices and play by the rules.
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China's price regulatory and anti-trust authorities have been closely watching excessively high prices of cars produced by foreign companies and joint-ventures for over two years, sources in the National Development and Reform Commission.
