In response to prominent problems such as speculation and high prices in the automotive chip market, the SAMR has recently filed an investigation on car chip distributors, the agency said
China’s regulatory agency (SAMR) is launching an investigation into chip distributors in the auto industry, citing suspicions of price gouging, it said on Tuesday.
The action by the State Administration For Market Regulation (SAMR) is the latest in a series of regulatory crackdowns on sectors across the economy following a range of companies and industries targeted over the past year as the Chinese government clamps down on industry.
In response to prominent problems such as speculation and high prices in the automotive chip market, the State Administration of Market Supervision has recently filed an investigation on car chip distributors, the agency said.
The agency added in its statement that the firms were suspected of driving up prices, based on price monitoring and reporting clues, and vowed to investigate and punish illegal acts such as hoarding, price-gouging and collusion.
A global shortage of chips that began last December has disrupted supply chains and the hardware sector across the world, resulting in a supply crisis. Though initially concentrated in the automotive sector, it has since spread to affect a wide range of gadgets.
The panic about supply uncertainty has occasionally led chip buyers and distributors to purchase more chips than they need, resulting in a vicious cycle that further drives up prices.
The chief executive of global chipmaker giant Intel said in June that he expected the shortage to hit bottom by year-end, with the market retuning to normalcy only by 2023.
China’s regulator imposed a record fine of $2.75 billion on e-commerce giant Alibaba in April for engaging in anti-competitive practices.