China will soon slap a penalty on an unnamed U.S. automaker for monopolistic behavior, the official China Daily newspaper reported, quoting a senior state official. Bobbi Rebell reports.
China is about to slap a penalty on an unnamed U.S. automaker, the official China Daily newspaper reported on Wednesday. The outlet quoted a senior state official saying an unidentified company is guilty of monopolistic behavior. News of the penalty comes at a sensitive time for China-U.S. relations after U.S. president-elect Donald Trump called into question a long-standing U.S. policy of acknowledging that Taiwan is part of "one China". And, even though the Chinese haven't pointed the finger at anyone specific, stocks of U.S. automakers, General Motors and Ford, tanked on the news. Bernie Woodall has covered the story for Reuters: (SOUNDBITE) BERNIE WOODALL, CORRESPONDENT, REUTERS NEWS, (ENGLISH) SAYING: "In the first three quarters of 2016 about twenty percent of General Motors' pretax profit came from China. And Ford about 16 percent of it, pre-tax profit came in from China. When the actual net profit is less than that, becasue of the joint venture nature of it and some expenditures of doing business in China, China is more important every day for the U.S. automakers." China is currently the world's largest auto market. The announced penalty follows a government crackdown on firms like Audi, Mercedes-Benz, and Toyota.