I don't think this has anything to do with the on going trade war.
I think China is trying to protect the interest of the consumers by making sure big businesses don't collude to set minimum prices for their products. It should be left to the discretion of the retailers and distributors. If the distributors want to compete for more businesses through thinner margin but higher volume they should be allowed to. As a consumer I welcome my government to follow China's lead.
2
The book “Beijing Jeep” tells how China scammed GM in the late 1970s. Americans are like people in a relationship with a serial abuser, telling oneself “This time will be different”.
4
Donald Trump is the arsonist who sets fire to a building for the sheer pleasure of watching it burn down except he never remembers to extract himself from the building. He was able to hide his (alleged) fortune from dozens of bankruptcies. He can't shield the economy and reputation of the United States of America from his actions. God help you, because no one in the White House and no Republican in the Senate or House is going to.
4
The trade war is a bold gambit by trump, but if the Chinese don't buy the bluff, then what? This is not just the first step in a well thought out strategy, it's the foolhardy impulse of a gambler who thinks he's on a roll in Atlantic City
The Chinese are determined, resolute and the people used to suffering.
Trump is reckless, agitated and and barely hanging on in the polls.
Wow.
This won't be good for anyone.
2
Perhaps they shouldn’t be doing business with China.
2
Will they be fining American companies like GM that export complete cars to the United Stated? Nope.
2
Ford's share , $ 2.5 million is 1/80 th of what Ford saved by moving the Focus production to China. ($ 1 Billion )
That is , essentially nothing.
However, if the trade war should scale up, Ford may lose its big bet
"Ford’s Big Bet: Americans, and Trump, Are Ready for Chinese Cars
Focus poised to be the top car exported to the U.S. from China "
Bloomberg News June 20, 2017
1
“Changan Ford” ?!?
The name itself shows why Trump is right and why we must fight back.
Like other US companies, Ford isn’t allowed to sell in China unless they enter into a joint venture with a local company (Changan), which is entitled to half the profits. And who inevitably steals the trade secrets and spins off a 100% Chinese company.
This is been going on for decades, and Bush, Clinton, and Obama did absolutely nothing. It has taken Trump, who actually had a business background, to cry foul and fix the situation.
5
Nothing has been fixed.
2
Make it 25 billion.Stop closing our factories.
1
Now they can spend their tax break....serves them right!
Makes you wonder after China starts to fine one of its own companies -equally owned by Americans the Chinese themselves- if the Chinese people are beginning to wonder if the CCP ,in it's growing dispute with the US, is focusing to much on Communist Red, and not enough on the promised entrepreneurial Black?
Not so easy, huh?
Mere Weeks after China joined the WTO, China enacted laws to discriminate against foreigners, require foreigners to let China steal technology and forfeit control to a China “partner”. A Chinese promise is worthless and punitive actions against foreigners are as old as China. Chinese have always had an embargo on anyone and anything nonChinese
3
So when is American big business gonna get tired of all this trump winning?
1
Ford destroyed the life of its workers in Wayne, Indiana
Why : Greed
Detroit News
..the automaker announced another big change of plans: Production of the next-generation Focus will be moved to China instead of Mexico, and Ford will import the Chinese-made cars to the U.S.
This marks the first time Ford will import Chinese-made vehicles to the U.S. Ford says the change in plans will save the company $1 billion.
https://www.detroitnews.com/story/business/autos/ford/2017/06/20/ford-moving-production-focus-china-wayne-michigan/103032080/
Since the Ford has vacillated back and forth on importing the Chinese made focus to the US, depending what Trump tweeted but closed the Wayne Plant, laying off 2000 Americans
1
According to that picture they sure like their white cars for some reason.
Don’t worry, Trump will just use our tax dollars to pay back Ford. He will declare victory for himself. Having fun Republicans? Nice job electing this clown.
1
China has to be the pettiest global giant in history.
1
“Trade wars are easy to win.”
— Donald J. Trump, who bankrupted 6 businesses and counting, lost 1.2 Billion in 10 years, and refuses to release his tax returns and academic records
2
The liar-in-chief can lie all he wants that China is paying his tariffs even as Americans are paying for that. China, under his "friend", Xi, has a better idea. By doing "fines" Americans are in fact paying that.
Maybe the liar-in-chief can learn something from his "friend". Ah, except we have such a thing as an independent judicial system that he wishes he can control.
1
So much winning.
1
China has anti-trust regulators???? The PRC is one big trust!
1
Congratulations Trump voters who work for Ford! Now you, farmers, students, and all tariff affected consumers who voted for Trump will experience directly Trump's ability to screw up an entire country just like all the businesses he failed at.
1
Yes, the fine will be shared "equally", however the revenue from the fine taken in by China Inc. will circle right back to China Inc., likely right back to the Chinese owned part of the entity. No one will ever really know where it goes, of course, because there is not, nor ever has been, transparency on the part of the Chinese. On the books it will be shown as a liability, but in China, everything is fungible.
5
@Rmayer and, since it is a business expense, it will indirectly be paid by the US taxpayers [partly{
What goes around comes around.
I find it interesting that there are 9 or 10 frames in the background.
Maybe they will use their tariff money to pay for them.
@John Hanzel No... Ford is partners with a State owned company . Fines really amount to cash infusions for Chinese partners by American partners. Slow way to get out from under tariffs by fines and blacklisting of American companies.
1
The trade war is going to be brutal if it cannot be halted. It's consequences will reverberate through recession that could last many years...
10
I did not know China had an antitrust regulator.
Seems like they are ignoring the biggest antitrust offenders: the Communist Party and the canal of top government/family businesses. Think the many thefts of American intellectual property that are going unpunished. Or think Huawei.
5
If the government‘s findings are correct, the fine would not be unreasonable. Setting minimum resale prices for dealers is an illegal practice in many countries, not just China.
4
Misleading article title.. this action has nothing to do with the current trade/tariff battle between nations.
Watch this get "trumped-up" by conservative pundits trying to inflame readers over China.... followed by Trump going crazy over it when he gets cycled by said conservative pundits.
Reality: Ford's China division (a joint venture, as are most auto companies working in China) got caught red handed price fixing. Believe it or not... price fixing is not well tolerated in China by consumers or businesses on the receiving end of the fixing... so this is no surprise that China regulators take firm action when it is discovered.
28
@Chuck. But But But - Creepy Joe said there is no problem with China. Of course, that was after Hunter Biden got his contract.
Ford management was aware when they invested in China that these problems were possible. It's unfortunate for them, but America's uncoupling from the China trade will not benefit American companies that have moved manufacturing jobs to China. It seemed like a good idea at the time.
8
@Harold
It remains a good idea for US auto companies to set up business in China. It is after all currently the largest single national car market in the world.
But as with almost all cases of setting up business in another country... you have to respect and adhere to their regulations and requirements.
My guess by the way is this was not Ford managements fault per se.... but rather the management team of the Ford joint venture in China.. which is probably largely locally managed by the Chinese side of the joint venture. Ford's only fault was not understanding that your business partners in a foreign nation may be inclined to cut corners, fix prices, conduct bribery campaigns.. etc. etc.
6
@Chuck, and let's not forget that in a foreign country, it is not unheard of for the government to just take the company away from the outsiders, with no recourse actions available. China has been stealing our intellectual property for decades, with NO interventions, not a peep out of our government.
2
@BorisRoberts
I encourage you to step back and reanalyze your use of the term "stealing IP".
In my experience working with companies that do business in China (which for me has been extensive) ... in almost every case... the companies have freely traded their IP for other benefits they seek.. such as access to the Chinese business and consumer markets. IP to a corporation is not what politicians would like to frame it as (state secrets)... it is actually normally used as trade or licensing currency between corporations. It's useless and wasted sitting a shelf somewhere, unless it is being used to freeze competition out of a market opportunity.
In the last company I worked for... the legal department had a whole IP team in place for the sole purpose of negotiating agreements with Chinese businesses, and IP was the most often used currency in negotiations precisely because China sees the value in being self-reliant in the long run. Given how western powers decimated China during the imperial era of the 19th century.. I honestly do not blame China in this regard. They benefit from having a long memory of how western nations preyed on China in that era.
China can and will steal government secrets and select IP related to technology surrounding national security interests of the US..... but it's not needed for almost all corporate IP. But this is true of virtually all countries government espionage efforts.. so singling out China is quite out of context and misleading.
6
Trump’s toolbox for dealing with any issue has one tool; a hammer. The results are painful and have unforeseen consequences for all parties. As long as his base approves, no changes will occur. It’s always worked in the past so why not continue
15
If Putin’s useful idiot Trump comes at China with a hammer, his corrupt party will bid on their sickle and use it on him or us as soon as their price is met.
Right trade war, wrong warriors.
2
@DO5 Trade wars are fun! And easy to Win! Plus! When you're a hammer everything los like a nail! BAM!bam! BAM!
@DO5
Trump has always subscribed to the bluff and bully model of doing business, and has carried this forward into the White House.
That said.. he also goes full "chicken" once his bluffs are called and his bully fails to work.. and backs down.. while claiming victory anyway.