China mulls improved auto sales regulations

China's Ministry of Commerce (MOC) said on Friday that it is actively studying measures to improve current regulations on automobile sales in response to soaring complaints over price fixing that has led to exorbitant prices of foreign cars.

"We've noticed reports of inharmonious relationships between carmakers and dealers. It necessary to revise regulations in the sector," said MOC spokesman Shen Danyang.

Current auto sales regulations, jointly released by MOC, the National Development and Reform Commission and the State Administration for Industry and Commerce in 2005, allow carmakers to control a large part of the sales and services of their vehicles in the Chinese market.

Those rights, while holding carmakers responsible for product quality, have prompted complaints that minimum prices have been set for dealers.

"We are actively researching measures to improve the regulations, and make relevant clauses more detailed to regulate business practices," Shen said, adding suppliers found to be abusing market dominance to fix prices will be punished according to China's antimonopoly law.