On Tuesday, China unveiled a series of measures aimed at US companies, including Google, several agricultural equipment manufacturers, and PVH Corp, the parent company of Calvin Klein, shortly after the implementation of new tariffs on Chinese imports by the United States.
In retaliation, Beijing imposed tariffs on various American goods, such as coal, oil, and certain vehicles, marking a significant escalation in the ongoing trade conflict between the two largest economies in the world.
The State Administration for Market Regulation in China announced an investigation into Google, citing suspected violations of the country’s anti-monopoly laws. However, the agency did not elaborate on the specifics of the inquiry or the alleged infractions.
Google’s services, including its search engine, are not accessible in China, accounting for approximately one percent of the company’s global revenue. Nonetheless, Google collaborates with Chinese partners for advertising purposes.
The tech giant had previously launched a small Artificial Intelligence (AI) center in China back in 2017, but this initiative was dismantled two years later, with the company ceasing any AI research operations in the country, according to a blog post from the firm.
In another move, China’s Commerce Ministry announced that PVH Corp and biotech firm Illumina were designated as “unreliable entities.” The Ministry accused both companies of engaging in discriminatory practices against Chinese businesses, which allegedly harmed the legitimate rights of these enterprises.
Being placed on this blacklist may expose these companies to financial penalties and a range of sanctions, such as trade freezes and the revocation of work permits for foreign employees.
Representatives for Google declined to comment on the situation. Meanwhile, PVH and Illumina did not respond to inquiries received outside normal business hours in the United States.
PVH has previously faced scrutiny from Chinese regulators for conduct related to the Xinjiang region, drawing further attention to the company’s operations in China.
Analysts at Capital Economics suggested that these actions serve as warnings from China, indicating its willingness to impact US interests while still leaving the door open for negotiation.
They noted that there is a possibility that the tariffs could be delayed or withdrawn before their enforcement, and the investigation into Google might conclude without any sanctions.
Tesla and Agricultural Equipment Manufacturers
The Chinese government also announced a 10 percent tariff on imports of American agricultural machinery, which could affect companies like Caterpillar, Deere & Co, and AGCO, as well as certain trucks and high-end sedans coming from the United States.
This could potentially impact Tesla’s Cybertruck, a vehicle the company has been promoting in China while it awaits regulatory approval for sales.
In December, China’s Ministry of Industry and Information Technology temporarily classified the Cybertruck as a “passenger car,” but that designation was quickly revoked.
If labeled as an electric truck, Tesla would incur the 10 percent tariff on any future imports from its Texas manufacturing facility.
Tesla has not provided a comment on these developments.
The newly announced tariffs will take effect on February 10, according to the Chinese ministry.
These recent developments further intensify the trade restrictions between Beijing and Washington. Under the previous US administration led by Joe Biden, restrictions had primarily targeted the tech sector, focusing on limiting China’s access to advanced semiconductor technology.
In December, China began an investigation into Nvidia regarding a suspected breach of its anti-monopoly laws, widely regarded as a retaliatory measure against recent US restrictions on the Chinese semiconductor industry.
Additionally, Intel’s products sold in China were also subjected to a security review by a prominent Chinese industry group late last year.
© Thomson Reuters 2025
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