It’s the world’s largest automotive market, and manufacturers as diverse as Daimler AG and General Motors already sell more vehicles in China than they do in the U.S. But they and other foreign companies are beginning to wonder “at what price?”
Both GM and Daimler, the parent of Mercedes-Benz — along with Audi, Chrysler and other carmakers — have come under investigation by China’s regulators, who have already levied more than $200 million in fines against a dozen Japanese auto parts suppliers for alleged price fixing.
And while the country’s President Xi Jinping has promised to open up the Chinese economy to increased foreign competition, a new study reveals there’s growing concern that precisely the opposite is happening.
A full 60% of those who responded to a survey by the American Chamber of Commerce in China said they feel “less welcome” in China. By comparison, only 41% responded that way a year ago.