European companies have lashed out at the Chinese government’s renewed crackdown on alleged violations of the country’s anti-monopoly law, saying that they have been subject to “intimidation tactics” by officials who have unfairly targeted foreign businesses.
In a rare public backlash, on Wednesday the Beijing-based European Chamber of Commerce in China issued what it described as a “consolidated stance” from member companies that had been targeted by antitrust investigations during the past year.
“The European Chamber has received numerous alarming anecdotal accounts from a number of sectors that administrative intimidation tactics are being used to impel companies to accept punishments and remedies without full hearings,” the group said.
It added that Chinese authorities had warned companies “not to challenge the investigations, bring lawyers to hearings or involve their respective governments or chambers of commerce”.
Last summer, China’s National Development and Reform Commission fined multinational baby powder manufacturers for alleged pricing violations. While the companies involved all accepted the NDRC’s findings, privately many foreign executives and lawyers argue that high prices in China are often a function of market demand, high import tariffs and other factors.
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