Multinational Car Manufacturers in China Under Pressure

European auto parts suppliers said, car-makers operating in China forced them to sign an exclusive agreement, which violated China’s "anti-monopoly law" and raised the price of spare parts.

These new allegations increase the pressure of multinational car manufacturers in China and these companies are the subject that have been under anti-monopoly investigation for a long time. 

National Development and Reform Commission (NDRC) is investigating whether auto companies have tried to influence vehicle dealers, parts and service retail prices set by distributors.

Auto industry working group from the EU-China Chamber of Commerce said, "Those imposed (upon auto parts company) limit consumer choice scale in the independent aftermarket, forcing them to choose either stores controlled by the vehicle manufacturer or counterfeit products on the market. "

Foreign car-makers operating in China need to establish 50-50 joint ventures with local partners. Compared with these car manufacturers and customers, foreign auto parts enterprises can wholly own his own business in China. 

Joerg Wuttke, president of EU-China Chamber of Commerce warned that "Golden Age" of foreign investment in China had come to an end, because China's economic growth continued to slow. (www.chinainout.com)