Concerns Raised About China's Anti-Trust Policy
Des Cambaliza | | Aug 15, 2014 02:48 AM EDT |
Qualcomm, one of the foreign companies in the Chinese market investigated by anti-trust regulators.
Concerns regarding China's strict anti-trust policy have been raised by the European Union Chamber of Commerce in China. It seems that the law targets foreign companies, the chamber said Wednesday.
The Chinese government responded by stating that the law covers all companies operating in the country. Domestic and foreign businesses are all affected.
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The recent incident with Qualcomm and a Chinese anti-trust advisor renewed concerns regarding the law.
The official Chinese news agency Xinhua reports that Zhang Xinzhu took huge rewards from the U.S. digital communications company.
The Chinese advisor and Social Sciences academic was fired. He did not say anything about the matter.
Xinhua did not disclose the nature of the reward. Qualcomm was contacted for a statement, but reporters have been unlucky.
Qualcomm is just one of the many foreign players in China that have been brought to attention in light of the anti-trust law.
The Chinese government actively pursues businesses thought to have violated the law. It has been enacted since 2008.
Even before the incident, Qualcomm's subsidiary has been suspected of an anti-trust offense. In February. Chinese anti-trust regulator National Development and Reform Commission (NDRC) said they suspect that the company is guilty of overpricing.
Another accusation is that Qualcomm abused its position in the digital communications market. If proven to be true, anti-trust fines will reach up to US$1 billion, according to NDRC.
A recent anti-trust report involves German carmaker Audi that is expected to pay US$40.63 million of fines, according to local reports.
European car makers lowered prices in response to allegations of violation by Chinese regulators.
The European Chamber said the Chinese government is using coercive tactics. Concerns about China using the anti-trust law in favor of local companies resurface.
But the Chinese government insisted that they have also investigated local companies suspected of violating the anti-trust law.
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