China selective, subjective on enforcement of antitrust laws: AmCham

According to members of the American Chamber of Commerce in China, the country is both selective and subjective on the enforcement of its antitrust laws, targeting companies from foreign nations.

AmCham chairman Greg Gilligan said that Chinese government agencies are placing multinational companies "under selective and subjective enforcement," with the laws lacking transparency and at times being vague in relation to particular cases.

Gilligan's statements follow those made by AmCham's European arm last month, when the group said that Chinese officials that are investigating antitrust issues are abusing their authority through the use of intimidation tactics.

Members of AmCham are concerned that the laws in China are once again shifting to become very opaque, which would be very hard for managers of multinational companies in China to anticipate or adjust to.

Gilligan also noted that AmCham members are wary of the rapidly deteriorating business environment landscape for foreign investments in the country.

In addition, AmCham members see "rising political risk, including both domestic political campaigns and foreign policy tension, which are directly reflected in declining foreign direct investment from North America, Europe, and Japan," wrote Gilligan in a survey that was published regarding the matter.

A spokesman for the Ministry of Commerce of China, Shen Danyang, had said last month that "there is no xenophobia" in the ongoing antitrust investigations. According to the National Development and Reform Commission of China, it is conducting the investigations to maintain order in the market and to protect the interests of consumers.

Since the antitrust probes have started, many car companies operating in China have announced price cuts on vehicles and spare parts. These car companies include Volkswagen's Audi, Daimler's Mercedes Benz, Fiat's Chrysler, Tata Motors' Jaguar Land Rover, Honda and Toyota.

Last month, China found guilty several Japanese car parts manufacturers for price fixing, which led to the government placing the biggest antitrust fines ever since the implementation of the antitrust regulations six years ago.

Reports also revealed that the State Administration for Industry and Commerce raided offices of tech giant Microsoft in several location in China. Microsoft was earlier told by the government not to disrupt the ongoing investigations.

"We're serious about complying with China's laws and committed to addressing SAIC's questions and concerns," said a spokeswoman of Microsoft Beijing.

There are over 3,500 members of AmCham coming from over 1,000 companies including Microsoft, Dell, Johnson & Johnson and Mead Johnson Nutrition.

ⓒ 2024 TECHTIMES.com All rights reserved. Do not reproduce without permission.
Join the Discussion
Real Time Analytics