China Crackdown Threatening to Erode Foreign Profits

China’s antitrust crackdown signals a new era of regulatory scrutiny in the country and threatens to end the days when products from Audi sedans to Starbucks lattes generate fatter profits in Beijing than in London or New York.

In the past month, Chinese antitrust authorities pressured at least seven carmakers to cut prices and raided the offices of software maker Microsoft Corp. The companies join Qualcomm Inc., Mead Johnson Nutrition Co. and Danone among foreign-owned businesses that have fallen under anti-monopoly scrutiny in China since last year.