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China’s Escalating Trade War: Google Under Scrutiny as Beijing Strikes Back


China launches an anti-monopoly probe into Google while blacklisting two U.S. firms in retaliation for fresh U.S. tariffs.


China Investigates Google, Blacklists U.S. Firms Amid Trade Tensions

In a fresh escalation of economic hostilities between the world’s two largest economies, China announced on Tuesday that it had initiated an anti-monopoly investigation into Google, a subsidiary of Alphabet Inc. (GOOGL.O). Simultaneously, Beijing placed two U.S. companies—PVH Corp (PVH.N), the parent company of Calvin Klein, and biotechnology giant Illumina (ILMN.O)—on its “unreliable entity list.” This move comes just minutes after the United States enforced additional tariffs on Chinese goods, further inflaming tensions.
The tit-for-tat measures underscore the deepening rift in U.S.-China trade relations, with both nations leveraging economic pressure to counteract each other’s policies. China’s Ministry of Commerce justified the blacklisting of PVH and Illumina, citing alleged “discriminatory measures against Chinese enterprises” that reportedly harmed local businesses’ rights and interests.

China’s Retaliation: Tariffs and Blacklists

In response to the U.S. tariffs, China swiftly imposed duties on select American products, including coal and oil, signaling its readiness to counter Washington’s economic strategies. The inclusion of PVH and Illumina on the unreliable entity list reflects Beijing’s increasing willingness to retaliate against companies it perceives as acting against its economic interests.
The decision to target PVH, a major player in the global fashion industry, and Illumina, a leader in DNA sequencing, suggests a broader strategy by China to push back against what it views as unfair business practices. The blacklist designation could have serious implications for these companies, potentially restricting their ability to conduct business within China, access supply chains, or receive essential regulatory approvals.

Google Faces Anti-Monopoly Probe

In a separate but equally significant move, China’s State Administration of Market Regulation (SAMR) launched an anti-monopoly probe into Google, citing suspected violations of China’s competition laws. While specific details of the alleged infractions remain undisclosed, the investigation signals Beijing’s broader efforts to curb foreign tech influence within its borders.
Despite Google’s core services—such as its search engine—being blocked in China, the company maintains partnerships with Chinese advertisers and other businesses. This scrutiny follows previous regulatory actions by China against U.S. tech giants, indicating a persistent effort to assert greater control over foreign digital platforms operating in the country.

Global Implications of the Trade Standoff

The latest developments reflect a broader trend of rising economic nationalism and regulatory interventions on both sides. Washington has long accused Chinese firms of unfair trade practices, intellectual property theft, and national security threats, leading to tariffs and trade restrictions on major Chinese companies like Huawei. In retaliation, Beijing has sought to counter these measures by imposing its own restrictions on U.S. firms, fueling an ongoing cycle of economic confrontations.
For American businesses operating in China, these developments present significant risks. Increased regulatory scrutiny and potential supply chain disruptions could impact corporate revenues and strategic planning. At the same time, heightened trade barriers may also influence global markets, affecting everything from stock prices to commodity supply chains.

What Comes Next?

With U.S.-China trade relations showing no signs of de-escalation, industry leaders and policymakers will closely monitor the implications of China’s latest actions. The anti-monopoly probe into Google, coupled with the blacklisting of PVH and Illumina, could set a precedent for further regulatory clampdowns.
As global markets react to these developments, businesses with international footprints may find themselves caught in the crossfire of geopolitical tensions. The future of U.S.-China trade remains uncertain, but one thing is clear—both nations are prepared to wield economic leverage in an increasingly fractured global landscape.

Source:  (Reuters)

(Disclaimer: This article is based on publicly available information and is subject to change. Readers should refer to official sources for the latest updates.)

 

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