China has initiated an antitrust investigation into Google, marking a significant response to the United States' decision to impose a 10% tariff on Chinese goods. The move comes amidst renewed trade tensions between the world's two largest economies. The US President, Donald Trump, justified the tariff as a reaction to Beijing's alleged inability to curb the flow of illegal drugs into the United States, a claim that has reignited the trade discord that appeared to be stabilizing prior to this development.
China's State Administration for Market Regulation is leading the investigation, focusing on Google's alleged monopolistic practices. Although Google's search and internet services have been blocked in China since 2010, the tech giant continues to operate in the country with a focus on advertising.
"Because Google is suspected of violating the Anti-Monopoly Law of the People’s Republic of China, the State Administration for Market Regulation has launched an investigation into Google in accordance with the law." – State Administration for Market Regulation
In conjunction with this probe, China has also added American companies PVH Corp., the owner of Calvin Klein, and Illumina, a gene sequencing company, to its restricted entities list. Furthermore, it has imposed new export controls on tungsten-related materials and levied a 15% tariff on US coal exports along with a 10% tariff on liquefied natural gas exports. These measures underscore China's strategic approach to balancing economic pressures in light of the US's recent tariff imposition.
The recent actions by both nations highlight the fragile nature of their trading relationship. Just as it appeared that relations were stabilizing, the imposition of new tariffs by the United States has exacerbated longstanding economic tensions. The Chinese government's investigation into Google reflects a broader strategy to counterbalance US policies that they perceive as aggressive.
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