GM, Ford Shares Tumble After Report China Will Penalize Unnamed U.S. Carmaker

Shares of U.S. automakers stumbled after Zhang Handong, a senior Chinese state planning official, cautioned that Beijing could slap penalties on an unnamed U.S. carmaker over price-fixing.

The warning, which was delivered via the China Daily newspaper, came in the heels of U.S. President-elect Donald Trump's remarks questioning whether America should standby its commitment to the “One China” policy.

Chinese authorities have been probing and reviewing the pricing practices of carmakers ahead of Trump's remarks, sources stated.

Trump's controversial remarks which have broken diplomatic protocols have shaken U.S. corporations who are dependent on the steady U.S.-sino relations. A spokesperson for Trump's transition team said they are aware of the report but stated that it would be premature to respond.

GM shares lost 2.2% while Ford fell 1.0% following the report's publication. In a statement, GM did not confirm if it was being investigated by the Chinese government. Meanwhile, Ford's Asia-Pacific business said the firm was not knowledgeable of the issue.

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