Guidelineaddressesmonopoliesinautosector[1]-Chinadaily.com.cn

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ASIAdocument.write(“” + m[today.getMonth()+1]+ ” “+ today.getDate()+”, ” + theYear + ” “);HOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperChina Daily Global PDFChina Daily Global E-paperBusiness /Auto PolicyEconomyPolicy WatchChina DataCompaniesMarketsIndustriesViewMotoringTechGreen ChinaGuideline addresses monopolies in auto sectorBy Li Fusheng(China Daily)Updated:2016-03-28 08:14
Comments Print Mail Large Medium SmallAn automaker partners with e-commerce website Tmall to promote its cars at an auto show in Zhengzhou, Henan province. Online car sales, which are addressed in the auto sectors antitrust draft, have become popular in China. [Photo provided to China Daily]Draft gives teeth to existing law while specifically targeting vehicle sectorChina is soliciting public opinion on an auto sector antimonopoly draft, a sign that car sellers may face fairer competition and which could give customers more freedom of choice in the worlds largest auto market.The draft, which the National Development and Reform Commission released on March 23 to seek public suggestions until April 12, covers monopolistic practices in sectors ranging from car sales, after-sale services and spare part supplies to online car sales and the maintenance of parallel imported cars.The first of its kind in all industries, the draft came after frequent investigations into monopolistic practices that involved more than a dozen auto brands and their dealers since 2014, with fines adding up to more than 2 billion yuan ($307 million).The countrys anti-monopoly law took effect in 2008 but there has been no legislation to fight monopolies in specific industries.Among other things, the draft, which experts expect will see little change before the final version, stipulates that car dealers be allowed to sell their products or services to customers in any region of the country as restrictive demands “weaken competition among dealers of the same brand, resulting in segmented markets and fuel price prejudice”.Yan Jinghui, a Beijing-based auto analyst, said automakers currently ban their dealers in one region from selling cars in other regions, Beijing Business Today reported.Automakers severely punish dealers caught doing so by canceling their rights to refunds or ceasing providing them with cars, but such acts will become history if the law passes as drafted, Yan said.The draft also makes online car sales at lower prices immune to monopolistic charges, saying that dealers who receive payment and deliver cars through automakers online transactions with unspecified customers on special occasions are different from dealers in the traditional sense.Some lawyers, including Wei Shibing, an antitrust lawyer at Beijings Dacheng Law Office, voiced concern about that clause, saying it could have loopholes that are hard to detect.”Automakers might sell cars online at prices negotiated with dealers. That is an act of vertical monopoly but it is difficult to monitor,” Wei said in an interview with National Business Daily.Previous Page1 2 Next PagePrevious Page1 2 Next Page8.03KRelated StoriesCloud of costs hurting companies has a silver liningQuality problems with automakers persistInternet era steers future of automakersFebruary auto sales slip a blip: expertsChinese will pay for auto drivingPhotoChina IT Summit takes place in ShenzhenInfographic: Value of global cross-border M&A dealsTop 10 happiest provincial capitals in ChinaShanghai Disneyland to offer pre-opening ticketsSoftBank staffs cell phone store with Pepper robotsTech titans talk about machines, men and virtual realityChina Economy By NumbersChina Economy by Numbers – Dec China Economy by Numbers – Nov NewsmakerUK-born businessman heads revolution in Chinas canteens Chinese rank among worlds wealthiest 62Most ViewedTodays Top NewsProblems the Northeast must solveChina liquor maker Wuliangye reports profit recoveryChinese train maker CRRC opens $1.5b smart equipment parkLatest forex data good news for policymakersGDP of Chinas northern and northeastern provincesLincoln ensures staff offer personalized experiencesIndustrial companies show profit uptick after tough 2015Infographic: Sino-Czech trade in numbersHot TopicsFiat SpA Peugeot SA Taxi app Internet finance Housing price Disneyland 12306.cn WeChatEditors PicksTop 10 favorite gift brands of rich Chinese men Top 10 most valuable global brands Top 10 most innovative carmakers of 2015 Top 10 Chinese cities with most startups SpecialsWorld Robot Conference 2015Made in China – fight against counterfeit goods2015 Beijing Forum for Emerging Markets…| About China Daily | Advertise on Site | Contact Us | Job Offer |Copyright 1995 -. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.License for publishing multimedia online 0108263             Registration Number: 20100000002731      

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