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.
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.
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.