Faced with the problem of aggressive price-cutting by car retailers, the government has decided on a tough response in the form of price regulation. Although the measure is understandable in light of the financial crisis, it remains to be seen whether it will be effective. Less burdensome instruments are also available that would not undermine foreign investors’ confidence, such as more stringent enforcement of the antitrust provisions contained in the Pricing Law

Andreas Diem and Francesco M Slerno
Gleiss Lutz Hootz
Shanghai