China’s Ramped Up Antitrust Effort

Fines totaling RMB 1.24 billion (about $200 million) have been imposed on companies in the auto parts and bearings industries, in the latest enforcement initiative from China’s National Development & Reform Commission, under China’s Anti-Monopoly Law. The NRDC has also been investigating a number of car manufacturers with regard to pricing of spare parts and maintenance, according to a post from law firm Cleary Gottlieb. This follows investigations and fines last year against manufacturers in a number or  industries, including “white spirits” and infant formula. “It is notable,” the attorneys write, “that for each investigation only the first company to report its behavior received immunity from fines.” Companies doing business in China are advised to make sure they have strong compliance programs that include training and oversight from senior executives.