The carmaker will take control of Brilliance Automotive and invest more to expand output in China.Read more
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In his speech to the United Nations, President Donald Trump yesterday said that the US trade deficit with China is "just not acceptable".
China is no longer willing to talk.
And companies are now feeling the effects - such as German car-maker BMW.
Jane Sydenham investment director at Rathbones, tells Wake Up to Money: "BMW has been an incredibly reliable source of profits and margins and for the first time since 2009 they've had to report lower profit margins partly due to emissions charges, partly due to trade wars, partly due to warranties - there has been a whole series of things that has affected them.
"These are some of the real effects of the trade war."
BBC Business News Reporter
"This investigation could prove very costly for the carmakers concerned.
"If the Commission finds that there has been deliberate wrongdoing - and it is very important to point out it has not yet done so - they could face very heavy penalties. Fines can run into the hundreds of millions of euros. Even, occasionally, into the billions.
"Then there's the political backdrop. Since the scandal over emissions cheating at Volkswagen erupted three years ago, any hint that manufacturers may have been sabotaging efforts to produce cleaner cars has gone down very badly - especially in Germany.
"Car companies do talk to one another, and on a regular basis. Sometimes it's about developing technical standards, or improving safety. All of that's allowed - the question is where they draw the line between essential cooperation and anti-competitive behaviour.
"That's likely to be the focus of the Commission's inquiry. And for the moment, it is simply an inquiry.
The Mini factory in Oxford will shut down for a month after Brexit at the end of March to minimise the risk of no deal disruption.
Owner BMW said its summer maintenance shutdown had been brought forward to 1 April to reduce any "possible short-term parts-supply disruption".
"While we believe this worst case scenario is an unlikely outcome, we have to plan for it," BMW said.
The German firm remained "committed to our operations in Britain".
Ian Robertson, BMW's special representative in the UK tells the BBC a no-deal Brexit would push up the cost of its cars