What just happened? China has retaliated against the new trade tariffs imposed on the country by announcing a series of measures against US businesses. These include an antitrust investigation into Google and placing American firms on its unreliable entity list.
China announced its retaliatory actions moments after the new US tariffs of 10% on products from the country came into effect.
The US also removed an exemption that previously allowed Chinese imports valued under $800 to enter tariff-free. This will have a major impact on Temu, Shein, and other companies that rely on the loophole.
The most notable response is the investigation into Google. The country's State Administration for Market Regulation said it initiated the investigation due to alleged violations of China's anti-monopoly law.
Google largely left China in 2010 over censorship concerns. The company's Search, Gmail, YouTube, and Play services remain blocked in the Asian nation, but it still operates some business operations, such as hardware sales and AI research, in the country. It also helps Chinese businesses that want to advertise their services on Google's platforms outside of China.
Google is no stranger to antitrust investigations. It is fighting legal challenges related to its search dominance, digital advertising, and app store practices in the US. The tech giant is also under regulatory scrutiny in the EU and UK.
Beyond Google, China's Finance Ministry announced 15% tariffs on coal and liquefied natural gas, and 10% on crude oil, farm equipment, large-displacement vehicles, and pickup trucks from the US, starting February 10. Beijing is also imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items, which it says will "safeguard national security interests."
China's Commerce Ministry said it would be adding two US firms to its unreliable entity list. The first is PVH Group, a clothing company that owns big fashion brands such as Calvin Klein and Tommy Hilfiger. The other company added to the list is Illumina Inc, a biotech firm that specializes in genomics, DNA sequencing, and genetic analysis technologies.
The Commerce Ministry said the two companies were placed on the list for their discriminatory measures against Chinese enterprises, adding that they had damaged the legitimate rights and interests of Chinese companies.
Companies on China's unreliable entities list are subject to restrictions that could see them lose access to the Chinese market and be banned from doing business with Chinese firms. There may also be restrictions on licenses and permits, personnel and visas, financial transactions, and more.
China said it had launched an investigation into Nvidia in December over alleged violations of its anti-monopoly laws. The move was seen as retaliation against US chip export restrictions placed on the country.
China retaliates against US tariffs with Google antitrust probe and trade restrictions
