China fine GM joint venture in China at $ 29 mi per monopoly, state TV says

BEIJING (Reuters) - China will fine General Motors' joint venture of 201 million yuan ($ 29 million) for monopoly practice, state television said on Friday, ending speculation after an authority warned it Sanctions against the automaker.

Shanghai's price regulator has said it will fine GM's partnership with China's largest automaker, SAIC Motor, for setting minimum prices on certain models of Cadillac, Chevy and Buick, according to China Central Television.

"GM fully respects local laws and regulations wherever we operate," the automaker said in a statement emailed. "We will fully support our partnership in China to ensure that all appropriate action is taken on this matter."

SAIC did not immediately respond to a request for comment.

The fine comes after statements by US President-elect Donald Trump questioning Chinese policy and naming Peter Navarro as trade consultant, a hard line on trade with the Asian giant. However, there is no evidence that punishment is a form of retaliation.

Last week, a National Development and Reform Commission official told the state-run China Daily that the commission would fine a US automaker for monopoly behavior.

Automotive sources told Reuters the investigation was already underway ahead of Trump's recent comments, raising fears that China was taking advantage of the case to send a message to the US government.

(By Jake Spring and Norihiko Shirouzu)