Toyota is cutting prices in China due to ant-trust fears

Toyota Motors has announced that it will be cutting the prices of parts for its luxury Lexus models in China, following similar moves by its German competitors, in response to China’s increased regulatory scrutiny over anti-trust issues, particularly with foreign companies.

Following intense anti-trust scrutiny, Chinese regulators found twelve Japanese auto parts and bearings manufacturers to be guilty of fixing the prices that were charged to the Chinese factories of at least five automakers, and as punishment, imposed fines that totaled somewhere around $200 million.

The fines, which are a record for Chinese regulators, are also notable for being levied almost exclusively against companies that are based in Japan. The fines conveniently coincide with the deteriorating diplomatic relations between China and Japan over territorial disputes, as well has how events in World War II are remembered and commemorated.

The Chinese government has been especially eager to pursue anti-trust cases in recent months, especially against foreign companies. Numerous multi-national companies have reaped huge profits in China and have captured large chunks of market shares that local competitors envy. However, this has also been accompanied by a massive transfer in technology and skills, and has resulted in millions of jobs being created.

China’s regulatory agency, the National Development and Reform Commission, has made it abundantly clear that intends to continue engaging in anti-trust cases. “The National Development and Reform Commission will pursue clues of other illegality that were found during this investigation, as it continues to carry out investigations to ensure fair enforcement, maintain fair competition in the market, protect the legitimate rights and interests of operators and consumers and create a favorable environment for economic and social development,” the release said.

Read more about the story at Automotive News.