CHINESE regulators have launched a series of anti-monopoly investigations of foreign car and technology manufacturers.

A regulator said yesterday that US firm Chrysler and Germany's Audi would be punished for violating anti-monopoly rules.

But the companies alleged that Beijing uses regulatory measures to hamper them and promote Chinese competitors in violation of free-trade commitments.

"Foreign companies view recent investigations and prosecutions as politically motivated," said former American Chamber of Commerce in China chairman James Zimmerman.

Investigations of the car industry have been prompted by complaints that import prices are too high and that foreign manufacturers abuse control over spare parts.

National Development and Reform Commission spokesman Li Pumin said investigators had concluded that Chrysler and Audi had engaged in monopolistic behaviour.

"They will be punished accordingly," he added.

Chrysler, Audi and Mercedes Benz had pre-emptively announced price cuts in response to the investigations, apparently believing they could avoid the charges.

Mercedes cut prices of replacement parts by up to 29 per cent on Sunday. Audi announced cuts of up to 38 per cent in July. And on Tuesday, Chrysler announced a 20 per cent drop on several models.

Imported cars in China can cost three times the US or European price. Manufacturers claim most of the difference is due to import and other taxes.

As for spare parts, manufacturers control supplies and can charge higher prices because they bar their component suppliers in China from selling to other retailers.