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Ford's Chinese joint venture with Changan Automobile; Changan Ford Automobile Co. was reportedly fined 162.8 million yuan ($23.6 million) by the State Administration for Market Regulation for restricting resale prices.

Changan Ford Car

The vehicles were in Chongqing city with the fine levied at 4% of Changan Ford’s annual sales in Chongqing. The joint venture has each partner owning 50-50 of the entity.

Ford (F) shares closed at $9.78 down −0.14 or 1.41% on the day after being up before the news broke.

Ford has been taking measures to drive sales growth in China in a difficult environment with trade tensions between China and the US rising. After the US, China is the second largest market for Ford but the company has been seeing sales declines in the region.

After the US imposed a ban on Chinese telecom company Huawei Technologies, China has threatened to retaliate with a blacklist on foreign firms. China is already investigating FedEx Corp. (NYSE: FDX) for misrouting its parcels to the US.

China has also stepped up its war of words with America with issuing a white paper on trade with the US and wheeeling out former leaders with disparraging remarks about the U.S.

From the TradersCommunity News Desk

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