Ford condemns his company in China with a fine of 23.6 million dollars

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China's state market regulator has fined Changan Ford 162.8 million yuan ($ 23.6 million) for setting minimum resale prices for its cars in the city of Chongqing, according to a statement released Wednesday on the regulator's website.

The fine represents 4% of the company's sales in Chongqing last year. Ford (F) owns 50% of the joint venture, the rest being controlled by its local partner, the national automaker Changan Automobile.

Changan Ford's shares have deprived downstream dealers of pricing autonomy, restricted competition and undermined the legitimate interests of consumers, the regulator said.

Car sales fall in China for the first time in 20 years

Ford said it "complies" with the market regulator's decision.

"Changan Ford has taken corrective action in its regional sales management with its dealers," said a spokesman for Ford in a statement.

"As an environmentally friendly company, Ford is committed to respecting local laws and regulations wherever we operate," added the spokesman.

The move at a historic American automaker comes at a time of tension in US-China relations.

Huawei could be the first big victim of China's clash with the United States

The escalation of the trade war between the two countries and uncontrollable punitive measures gave shivers to the global economy and shook investors.

After Washington banned US companies from supplying essential software and components to Chinese technology giant Huawei, Beijing announced the establishment of a blacklist for foreign companies.
Earlier this week, the Chinese government announced that it was investigating FedEx after Huawei announced that the transportation company had diverted two parcels destined for the company's offices in China.
Ford will present 30 new models in China over 3 years

The penalty also comes as Ford seeks to catch up in China.

The automaker announced in April that it plans to launch more than 30 new Ford and Lincoln vehicles in China over the next three years as it attempts to reverse a decline in sales in the world's largest auto market .

China is Ford's second largest market after the United States. But, along with other automakers, the Chinese auto sector is collapsing – Ford sales in the country have fallen by nearly 40% in 2018 compared to the year former.

Serenitie Wang contributed to this report.

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