China has initiated a broad spectrum of actions against US corporations, including Google, agricultural machinery manufacturers, and the parent company of Calvin Klein, just moments after fresh US tariffs on Chinese imports were raised by Donald Trump.
In a quick retaliation to the tariffs by Trump, China came up with further measures placing duties on American exports such as coal, crude oil, and select automobiles, intensifying the tensions between the two largest economies in the world.Â
The State Administration for Market Regulation in China disclosed that Google was suspected of contravening the country’s anti-monopoly legislation and this prompted an official probe. However, specific details regarding the alleged violations or the nature of Google’s misconduct were not made known.
Despite the fact that Google’s search engine and several of its services are not allowed to operate in China, the company still derives approximately 1% of its worldwide revenue from the regions as a result of collaborations with Chinese advertising firms.
In 2017, Google launched a modest artificial intelligence research facility in China, though the initiative was dismantled two years later. A corporate blog post confirmed that the company does not currently engage in AI research within the country.
Meanwhile, China’s Ministry of Commerce placed PVH Corp, the parent firm overseeing brands such as Calvin Klein and Tommy Hilfiger, alongside US biotech company Illumina, on its “unreliable entity” register.
The ministry accused these companies of carrying out “discriminatory measures against Chinese enterprises” and infringing upon the legitimate rights and interests of Chinese businesses.Â
While Google is yet to issue a statement, PVH expressed its “surprise and deep disappointment regarding the ministry’s decision. The company emphasised that it adheres to “strict compliance with all relevant laws and regulations and operates in line with established industry standards and practices.” PVH reaffirmed its commitment to engaging with Chinese authorities in pursuit of a “positive resolution.”
Following the announcement, shares of PVH and Illumina saw declines of nearly 4% each in premarket US trading, whereas Alphabet, Google’s parent entity, recorded a 1% gain.
PVH had already been under regulatory scrutiny in China for alleged “improper” conduct linked to the region.
Tesla and Agricultural Equipment Makers are also Affected
China also revealed a 10% tariff on US agricultural machinery imports, affecting manufacturers like Caterpillar, Deere and AGCO. The new duties extend to certain truck models and high-powered luxury sedans exported from the United States to China.
Tesla’s Cybertruck, which the company has been actively marketing in China while awaiting regulatory approval for sales, could also be impacted. In December, China’s Ministry of Industry and Information Technology classified the Cybertruck as a “passenger car” in an online posting that was later removed.
If authorities were to officially categorize the Cybertruck as an electric truck, any future imports from Tesla’s Texas facility would be subject to a 10% duty. Tesla has not issued a statement regarding the matter.
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