China takes action against Google and other US companies amid rising trade tensions.

China Increases Trade Tensions with Actions Against U.S. Companies

Beijing, February 4 (Reuters) – China has announced new measures against several U.S. companies, raising tensions in the ongoing trade conflict. This comes shortly after the U.S. imposed new tariffs on Chinese goods. In response, China introduced tariffs on U.S. products like coal, oil, and certain vehicles.

China’s market regulator has started an investigation into Google for possible violations of anti-monopoly laws, though specific details were not shared. Interestingly, Google’s services are already blocked in China, and the company earns only about 1% of its revenue from the country. However, it still works with Chinese advertisers.

China also added PVH Corp (which owns Calvin Klein and Tommy Hilfiger) and U.S. biotech firm Illumina to its “unreliable entity” list, accusing them of discriminating against Chinese companies. These firms could face penalties like fines or trade restrictions. PVH expressed disappointment, stressing its commitment to legal and industry standards, while Illumina has not responded yet.

Following these announcements, PVH and Illumina’s shares dropped by nearly 4%, while Google’s parent company, Alphabet, saw a slight 1% increase.

China also imposed a 10% tariff on U.S. farm equipment, affecting companies like Caterpillar and Deere & Co. The tariffs will also impact some trucks and large-engine cars from the U.S., including Tesla’s Cybertruck, once it receives regulatory approval.

These moves reflect the growing trade barriers between China and the U.S., especially in the tech sector. Last year, China investigated Nvidia over anti-monopoly concerns, likely as a response to U.S. restrictions on Chinese tech companies. This situation highlights the ongoing challenges in global trade relations.