China antitrust probes hit concerns over European firms
The European Union Chamber of Commerce in China on Wednesday expressed concern over a recent series of antitrust investigations, saying China was using strong-arm tactics and appeared to be unfairly targeting foreign firms.
An array of industries have been coming under the spotlight as China intensifies efforts to bring companies into compliance with an anti-monopoly law enacted in 2008.
The auto sector has been under particular scrutiny, and the National Development and Reform Commission (NDRC), China’s state planner, has been investigating it amid accusations by state media that global car makers are overcharging consumers.
The European Chamber said that while effective enforcement of the anti-monopoly law would help develop a “healthy market economy” in China, it was concerned about the way investigations were being carried out.
European business are also increasingly wondering whether foreign companies are being disproportionately targeted, said the chamber, which has more than 1,800 member companies in China.
“In some of the industries under investigation, domestic companies have not been targeted for similar violations. Furthermore, in some cases that involve joint ventures, it has only been the foreign partner that has been named as being a party to the investigations,” it said.
U.S. companies have also been caught up in the investigations, including software giant Microsoft Corp, and chipmaker Qualcomm Inc which faces the prospect of a $1 billion fine.
Such investigations have rekindled concerns that the Chinese government may be using the anti-monopoly law to support domestic firms at the expense of foreign companies.
Source: Reuters
