So what does China call its state-owned corporations?
Automakers are extremely anxious to set up shop in China. You know, to make lots of money. But China is adamant that things are done its way. You know, because Communism. And now two major automakers, Audi and Chrysler, are about to be punished by China's National Development and Reform Commission (NDRC) for participating in monopolistic behavior. At the same time, the NDRC has completed investigations into Japanese auto parts makers for the same reason.
Apparently, these Chinese anti-monopoly laws have been around for six years, and the NDRC has the ability to impose fines of "between 1 and 10 percent of a company's revenues for the previous year." Chrysler's Chinese division has stated that it'll fully cooperate with the NDRC, and will cut prices on 145 components by 20 percent. It'll also cut what it charges customers for two Jeep SUVs. For its part, Audi said it'll lower replacement costs of its parts by as much as 38 percent. Other automakers, such as BMW and Jaguar, are also in the process of reducing prices out of fear of being the next targets of the NDRC.