BEIJING--Chinese regulators denied allegations made by foreign
business groups that China is using its antimonopoly law to
unfairly target foreign companies and may be violating its World
Trade Organization commitments.
Xu Kunlin, an official at National Development Reform
Commission, said at a press briefing Thursday that China treats
foreign and domestic companies fairly. The economic planning body
found that foreign companies accounted for about 10% of
antimonopoly cases in a review of more than 300 instances, Mr. Xu
said. He didn't say how long the commission conducted the
review.
"We do not target the foreign companies specifically," Mr. Xu
said, adding that investigations are conducted fairly and according
to law.
Mr. Xu also said that the investigation of U.S. chip maker
Qualcomm Inc. is nearing completion and that regulators will meet
with the company's executives Friday.
Mr. Xu joined heads of the Ministry of Commerce and the State
Administration for Industry and Commerce, three of the main
entities that have been spearheading probes and fines of the
commercial sector in China, in a rare press briefing to defend
their actions after international business lobbies complained of
unfair treatment
The U.S. Chamber of Commerce, the U.S. China Business Council,
the European Union Chamber of Commerce in China and the American
Chamber of Commerce in China all lodged complaints within the last
few weeks.
The U.S. Chamber said in a report released on Monday that
China's use of its six-year-old antimonopoly law has been
subjective and that enforcement agencies have skewed its
implementation to favor China's own industrial policy and local
companies. It said that discrimination "arguably violates
commitments that China undertook when it acceded to the World Trade
Organization."
A survey by the American Chamber of Commerce in China released
last week shows that 60% of companies f eel less welcome in China
than before, a sharp increase from 41% in the previous poll a year
ago. In response to a new survey question, 49% of respondents
believe that foreign firms are being singled out for attack.
Chinese regulators last month levied fines of $200 million on 10
Japanese auto-part makers for alleged price manipulation and two
others probed were exempt from the fine. Audi AG, BMW AG and
Mercedes-Benz parent Daimler AG are awaiting possible punishment
following similar probes. Microsoft Corp. and Qualcomm Inc. are
being investigated for potential monopolistic activity. Regulators
earlier this month handed Microsoft a 20-day deadline to explain
what they called compatibility and bundling issues with its
software.
BMW, Audi and Daimler responded to the investigations by cutting
prices. Qualcomm has said it is cooperating with authorities;
Microsoft has said that it abides by laws in China and is
cooperating with authorities.
Experts believe that Chinese regulators have been trying to
curry favor with the general population by tackling high consumer
prices in China. But many believe the regulators have used
questionable tactics, such as launching probes and advising
companies not to seek legal representation, to control product
pricing in industries ranging from dairy to auto parts.
Mr. Xu said that some details in the reports by foreign
organizations weren't true and that companies have been allowed to
bring their own attorneys to meetings. "I welcome you to hire the
most famous lawyers in the world," Mr. Xu said, referring to his
coming meeting with Qualcomm.
Ren Airong, a director of antimonopoly at the State
Administration for Industry and Commerce, said that when probing
Microsoft, regulators were frequently outnumbered by the software
company's lawyers.
Ms. Ren defended the Microsoft investigation, saying, "Any
company, no matter how big or small, if it breaks the law, then we
should evenly treat them as those that break the law," Ms. Ren
said.
Chinese companies haven't been immune from regulatory
enforcement and punitive action. Beijing fined three Chinese cement
companies on Tuesday a combined 114 million yuan ($18.6 million)
for price fixing.
Yang Jie, Laurie Burkitt
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