General Motors has found itself on the wrong side of the Chinese government, having been found guilty of “monopolistic” pricing.
According to , the government accused the American automaker and its partner SAIC Motor Corp Ltd. of setting minimum pricing on vehicles sold under the Cadillac, Chevrolet and Buick badges and slapped the joint venture with a fine of 201 million yuan (approximately $29 million).
The company said in an emailed statement:
“GM fully respects local laws and regulations wherever we operate. 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.”
It has been speculated that Chinese government officials fined GM in retaliation to President-Elect Donald Trump selecting a trade adviser with a long history of speaking out against America’s dealings with China.
Sources who spoke with Reuters claim the investigation was underway long before the U.S. elections. However, we find it a bit suspicious that it took until now for the government to penalize such blatant market manipulation.