GM's joint venture with SAIC draws government ire.
Chinese government officials announced Friday that General Motors will be fined for "monopolistic" pricing as part of its joint venture with SAIC Motor Corp Ltd.
The government has accused GM of setting minimum pricing on vehicles sold under the Cadillac, Chevrolet and Buick badges, Reuters reports.
The fine will total 201 million yuan (just shy of $29 million).
In a statement emailed to the news agency, GM said the company "[...] fully respects local laws and regulations wherever [it] operate[s]," and that it "[...] will provide full support to [its] joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter."
It was also speculated that the fine could be a form of retaliation by Chinese government officials in the wake of President-Elect Donald Trump selecting a trade adviser with a long-held stance against America's current dealings with China.
There's no overt evidence to support the theory, and sources have told Reuters that the investigation was underway long before the U.S. election took place. However, the timing of the fine and the fact that it took so long for such blatant market manipulation to be penalized are both somewhat suspicious.