China Is Trying To Control Rising Semi Prices By Fining Auto Chip Manufacturers | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

China Is Trying To Control Rising Semi Prices By Fining Auto Chip Manufacturers

China is taking a page out of the Keynesian central banking playbook on how to micromanage an entire economy and is now reportedly fining auto chip sales companies for driving up prices.

And, like central banks will soon find out, we expect China to find out the hard way that you can't print, fine or tax your way to productivity.

The price increases are likely a normal result of a shortage of supply in semiconductors, which has plagued auto manufacturers for the better part of the last year.

China's State Administration for Market Regulations said it had fined three local companies a total of 2.5 million yuan, according to a report in Automotive News Europe.

The companies fined included Shanghai Chengsheng Industrial, Shanghai Cheter and Shenzhen Yuchang Technologies.

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