China ups anti-monopoly activity

China has recently launched three separate anti-trust investigations into foreign companies, prompting speculation that the moves are part of a pattern.

China: vendetta? FocusDzign

The latest is Tetra Pak, the world's biggest packager, which is being investigated for "misuse of its market dominance" by the State Administration for Industry and Commerce, according to MedCityNews. Also under examination are four food majors - Danone, Nestle, Mead Johnson Nutrition and Abbott Laboratories - by the National Development and Reform Commission for their milk powder prices. In early July, the New Zealand-based dairy group Fonterra revealed the it is also being investigated by the National Development and Reform Commission.

Vendetta?

This pattern of events has prompted some to ask if China is co-ordinating a vendetta response to its own competition problems abroad. Several large Chinese organisations have been fined for unfair pricing abroad - and the EU and China are currently engaged in difficult negotiations over the pricing of solar panels. But not all experts see a conspiracy here. Qiu Baochang, a lawyer based in Beijing, is quoted on MedCityNews as saying: "China is drawing a clear red line, to show all firms - whether foreign or local -- that any anti-competitive behaviour will be punished."

 

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