China's recent antitrust investigations have caused great concern among auto executives.

Anti-monopoly laws are needed in any maturing market. Since there is a natural tendency to create monopolies, there must be a way to limit their negative impact on consumers.

Antitrust investigations into monopolies are common in Europe as well as other markets.

A few weeks ago, authorities in Germany announced the result of an investigation of a sausage makers' trust. Yes, that's right. Sausages in Germany are overpriced. The authorities issued a 338 million euro fine for fixing the price of sausage to retailers.

But there's a difference between antitrust investigations in Europe and China. In Europe, investigations are carried out without visibility to the public. The authorities avoid leaks, and the innocent are protected unless proved guilty. This rule of law must be observed to protect the interests of all parties.

The European Chamber has issued a clear position in favor of China's anti-monopoly law. [The chamber's statement has been posted in the "press release" section of Automotive News China's website.]

In fact, the chamber has helped Chinese authorities to study the best practices of the European Union's member states.

This law is an important step in China's development into a market economy, as the government stated in the third plenary session of 1978. ("Let the forces of the market decide.")

The second important reform -- which Xi Jinping's administration is supporting -- is the rule of law. ("Nobody can stand above the law.")

The rule of law must ensure that China's legal authorities do NOT damage companies by announcing investigations and possible fines before the investigations are concluded.

Also, the rule of law should prevent regulators from intimidating businesses. For example, businesses should not be discouraged from bringing lawyers to their meetings with investigators. And regulators should not discourage businesses from accepting punishment without full hearings.

Hopefully, China's senior officials will make sure that their anti-monopoly investigations are fair and impartial. If that happens, the impact on the market and consumers will be positive.

Which brings us to the specifics of the government's investigation of the auto industry. Among other things, China's National Development and Reform Commission has investigated allegations that some automakers inflate the cost of spare parts supplied to their dealerships.

A reduction in spare part prices would reduce the car buyer's total cost of ownership. Several days ago, Yang Jian, managing editor of Automotive News China, wrote that this would benefit the industry. I agree.

These investigations may have some additional consequences. As foreign brands reduce their prices, they could exert price pressure on local Chinese brands that had previously enjoyed a cost advantage.

But we should remember that China's high tariff on imported cars and components plays a much bigger role in the car owner's total cost of ownership.

Consumers always bear the cost of protective duties in the country that applies them -- in this case China. That's why open trade -- and lower tariffs -- will benefit Chinese consumers even more than antitrust investigations.