If you have paid attention to some international corporate news, you may know that recently the Chinese government is conducting multiple antitrust investigation on some famous foreign companies who are doing business in China.
Qualcomm (NASDAQ: QCOM) has been determined by the regulator – the China National Development and Reform Commission (NDRC), to has monopoly activities and is facing a fine of 7-billion RMB (approx. 1.13-billion USD). And, it has been said that Microsoft China is also under a separate investigation recently.
The same thing happens on automobile industry too. Today, Mercedes-Benz China announced that because of the NDRC antitrust investigation, starting from September 1st, it is lowering pricing for over 10,000 of Mercedes-Benz vehicle parts. The price reduction is 15% in average. Among these 10,000 parts, windshield pricing is 29% lower, power steering pump is 24% off and the radiator is deducted by 16%.
According to Mercedes-Benz, by lowering the parts pricing, it lowers customer’s maintenance cost and increases the brand’s market competing power.
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