China has officially announced the initiation of a new investigation into Google, suspecting the tech giant of violating its competition laws. This move comes amid heightened trade tensions between Beijing and Washington following the recent implementation of new U.S. tariffs targeting Chinese goods.
Google Under the Scrutiny of Chinese Authorities
While the Chinese government has not disclosed the specific reasons for its probe, the action is part of a broader pattern of targeting American companies operating within its borders. Beijing is increasingly accusing major foreign tech firms of anti-competitive practices amidst a backdrop of a trade and fiscal war where retaliatory measures are escalating. According to official statements, “Google is suspected of violating the anti-monopoly law of the People’s Republic of China, prompting the state market regulatory authority to launch an investigation in accordance with the law.”
Simultaneously, China has placed two American firms on its unreliable entities list: Illumina, a biotechnology giant, and PVH Corp, the owner of well-known brands like Tommy Hilfiger and Calvin Klein. According to the Chinese Ministry of Commerce, these companies have allegedly “violated the principles of fair trade” by severing their business ties with Chinese enterprises and engaging in discriminatory practices.
It is important to note that PVH Corp has been under investigation since September 2024, accused of unreasonably boycotting Xinjiang cotton—a region where Beijing is alleged to have committed human rights violations against the Uighur Muslim minority.
A Response to American Sanctions?
This regulatory onslaught by China occurred just days after the United States increased tariffs by 10% on all goods imported from China. The Trump administration justified this action by citing China’s alleged role in the fentanyl trade—a crisis that has severely impacted public health in the U.S.—as well as the trade deficit which they argue burdens the American economy.
This latest escalation marks a further hardening of Sino-American relations, where economic sanctions and regulatory investigations are used as strategic tools of confrontation. On one hand, the Chinese investigation into Google could have significant implications for the tech market and international trade relations. On the other, the United States is likely to respond soon, potentially intensifying their sanctions against China, fueling an economic war with stakes far beyond the digital sector.
As the conflict between these two global powers intensifies, both American and Chinese companies find themselves at the heart of a geopolitical battle with worldwide consequences. In this scenario, it’s not just Google that’s at risk; all major American tech firms, including Apple, could face challenges.