Bom­bardier fined for ven­ture glitch

China Daily (Canada) - - FRONT PAGE - By REUTERS

China’s Min­istry of Com­merce has fined Canada’s Bom­bardier and a unit of lo­cal train­maker CRRC Corp 150,000 yuan ($23,572) each for set­ting up a joint ven­ture be­fore ob­tain­ing prior gov­ern­ment ap­proval.

Bom­bardier and CSR Nan­jing Puzhen agreed to in­vest 125 mil­lion yuan each in Novem­ber 2014 to set up the joint ven­ture but only no­ti­fied reg­u­la­tors in De­cem­ber, vi­o­lat­ing anti-mo­nop­oly law, the min­istry’s bureau charged with en­force­ment said in a state­ment on Tues­day.

It also said that fur­ther eval­u­a­tions had con­cluded that the joint ven­ture would not af­fect com­pe­ti­tion. The two firms had agreed to de­velop and man­u­fac­ture ve­hi­cles for ur­ban and air­port transit sys­tems, ac­cord­ing to Bom­bardier’s web­site.

Marc Laforge, a Bom­bardier spokesman, said the no­ti­fi­ca­tion re­quire­ment was in­tro­duced when Bom­bardier and CSR were al­ready in the midst of form­ing their joint ven­ture.

“At the end of the day, we’re very sat­is­fied that our joint ven­ture was ap­proved,” he said, adding that the com­pany did not plan to ap­peal the reg­u­la­tory de­ci­sion.

CSR Nan­jing Puzhen was a unit of CSR Corp, which was merged with ri­val train­mak­erChina CNR to cre­ate CRRC Corp ear­lier this year.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.