China Slaps Ford Joint Venture With Huge Fine as Trade War With US Escalates

Trade disagreements between the US and China emerged last June after President Donald Trump decided to impose 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the trade deficit.

Chinese authorities have imposed a $23.6 million fine on Ford's joint venture with Changan Automobile for "price fixing" as trade tensions between the Asian country and the US are gaining momentum.

According to a statement issued by the State Administration for Market Regulation, Changan Ford "set a minimum resale price" in 2013 for vehicles sold in the city of Chongqing in a move that "deprived dealers of pricing autonomy… and damaged fair competition and legitimate interests of consumers".

The joint venture is a 50/50 split between the US car producer and the Chinese state-owned Changan Automobile Group.

Commenting on the ruling, a Ford representative said that "Changan Ford respects the decision taken by the State Administration for Market Regulation".

READ MORE: Nature of US-China Trade Talks Misrepresented by Beijing — US Treasury, USTR

Last June, Trump ruled to impose 25 percent tariffs on $50 billion worth of Chinese imports in a bid to balance the trade deficit. Since then, the two countries have exchanged several rounds of duties.

Most recently, Washington raised tariffs on another $200 billion worth of Chinese goods to 25 percent last week. Beijing retaliated by announcing tariff hikes of up to 25 percent on $60 billion worth of US imports starting in June.

Besides the tariff war, in May US President Donald Trump issued an executive order adding China's Huawei and its 70 affiliates to a trade blacklist, thereby restricting its activity in the country. Following the ruling, several US tech giants, including Google, Intel, and Microsoft announced suspensions of ties with the Chinese company.