Ford’s (F) joint venture Changan Ford has been fined $23.6 million by Chinese regulators for violating the country’s antitrust laws. Ford has a 50 percent stake in Changan Ford with Changan Automobile owning the remaining stake in the joint venture.

The automaker was fined for allegedly setting a minimum for resale prices on its vehicles in the city of Chongqing, China, according to the Chinese State Administration for Market Regulation website. Regulators claim Ford’s restricted the competition of downstream dealers while also damaging consumer interests and depriving dealers of price autonomy.

The fine comes as a tariff war has erupted between the U.S. and China, which is further complicated by Ford’s inability to make up declining sales in the country, CNN reported. China is considered the largest automobile market in the world and the second biggest market for Ford behind the U.S.

Ford reportedly saw sales drop by nearly 40 percent in China in 2018 as it looks to launch 30 new vehicles in the country in the next three years to help make up the sales it has lost.

The monetary fine was determined by Ford’s 2018 sales in Chongqing, accounting for 4 percent of the company’s revenue. Ford responded to the fine by saying, it “respects” the decision made by the regulators of the auto market.

"Changan Ford has taken corrective action in its regional sales management together with its dealers," a Ford spokesperson told CNN in a statement. "As an ethical company, Ford is committed to complying with local laws and regulations wherever we do business.

Shares of Ford stock were down 0.45 percent as of 12:05 p.m. ET on Wednesday.

Ford in China
A Ford Mustang is seen at a dealership in Beijing. Ford, GM and Western car brands are being battered by China's slowing economy. GREG BAKER/AFP/Getty Images
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