China has fined $29 million to General Motor's main joint venture  for reportedly suppressing competition by enforcing minimum sales for dealers.

This is the latest in a series of penalties that China has imposed on foreign auto companies under the country's 2008 anti-monopoly laws, an initiative that aims to force down consumer prices.

Like Us on Facebook

The Shanghai Price Bureau accused Shanghai GM, a joint venture of state-owned Shanghai Automotive Industries Corp., of improperly suppressing competition by enforcing the minimum price that dealers are allowed to charge for Cadillac, Chevrolet, and Buick models.

"That disrupted the normal order of market competition," the bureau said in a statement.

Minimum retail prices are a common practice in many markets.  However, according to lawyers, Chinese regulators see the practice as an improper leash on competition.

The bureau said that the penalty was set at 4 percent of Shanghai GM's annual turnover, which translates to approximately $29 million.

The latest announcement comes hot on the heels of US President-elect Donald Trump's criticism of Chinese trade practices. There is, however, no indication that the case is linked to Trump's comments. 

In 2014, Audi, Volkswagen's luxury unit, was fined $40.5 million, while Fiat Chrysler received a smaller penalty for the same charge of enforcing price controls.

Several Japanese auto parts suppliers have also found themselves on the wrong end of the law on the same price fixing charges.

The Chinese government began the industry-wide investigation in 2014 following complaints that foreign auto brands were taking advantage of their control over supplies of spare parts to overcharge customers.

Tagschina, General Motors, china business