China Launches Antitrust Probe Against Google, Nvidia in Retaliation for US Tariffs
China has announced an antitrust investigation into US tech giants Google, Nvidia, and possibly Intel, in retaliation for the recent 10% tariffs imposed by the United States on imported goods. This move is part of a broader strategy by the Chinese government to counter US trade measures that took effect on February 4.
The Android Antitrust Inquiry of Google.
Although Google's services are unavailable in major parts of China, the company is a primary target of China's investigation. According to reports from Ars Technica, the antitrust probe could centre around how Google’s Android mobile software works as part of global smartphone ecosystems. In 2020, China threatened to investigate Google but did not follow through at that time.
Google has not responded to inquiries about the investigation.
Nvidia and Intel Under Scrutiny
In addition, the Chinese authorities might also take action against Nvidia and Intel, along with Google. China has not yet confirmed the specifics of these investigations, however, industry analysts believe that the scrutiny may be due to intervention over competition and market power in the semiconductor and AI sectors.
The investigations come at a time when US-China trade tensions are escalating.
China Announces New Tariffs on US Goods
China will begin imposing tariffs on US energy, oil and agricultural equipment as well as targeting US tech companies from February 10. However, diplomatic negotiations may provide a short-term reprieve. China agreed to delay imposing tariffs on imports from Mexico and Canada by 30 days on February 3, after last-minute talks, giving hope that it would do the same with the US.
These developments are part of a broader economic standoff between the two countries, in which both have taken steps with long-term consequences for global trade and technology markets.
PVH Corp and Illumina Blacklisted
China has also placed PVH Corp, the parent company of Calvin Klein, and biotech firm Illumina on its “unreliable entity” blacklist. That designation could lead to sanctions and restrictions on imports from such companies. In response, PVH expressed disappointment:
We are surprised and deeply disappointed to learn of the decision from the Chinese Ministry of Commerce. In our 20 years of operating in China and proudly serving our consumers, as a matter of policy, PVH maintains strict compliance with all relevant laws and regulations and operates in line with established industry standards and practices.
Future Implications for Global Trade
The retaliatory measures from China show that the two biggest economies in the world are deepening their trade tensions even further. Industry experts are watching these investigations and tariffs affect US companies closely as well as the trade relationship around the world. Whether or not more escalation is averted will be decided by the outcome of ongoing negotiations.