China targets Google, other US firms as trade tensions escalate
China announced a wide range of measures on Tuesday targeting US businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein, minutes after new US tariffs on Chinese goods took effect.
Beijing also slapped tariffs on US products such as coal, oil and some autos in a rapid response to the new duties on Chinese goods imposed by US President Donald Trump, escalating trade tensions between the world’s two biggest economies.
China's new measures, include a 15% levy on US coal and LNG and 10% for crude oil, farm equipment and a small number of trucks as well as big-engine sedans shipped to China from the US.
China’s State Administration for Market Regulation said Google was suspected of violating the country’s anti-monopoly law and an investigation was initiated in accordance with the law. It did not provide further details on the investigation or on what it alleged Google had done to breach the law.
Google products such as its search engine are blocked in China and its revenue from there is about 1% of global sales. It still works with Chinese partners such as advertisers. In 2017, Google announced the launch of a small artificial intelligence centre in China. But the project was disbanded two years later and the firm does not conduct AI research in China, according to a blog posting.
Separately, China’s Commerce Ministry said it had put PVH Corp, the holding company for brands including Calvin Klein and Tommy Hilfiger, and US biotechnology firm Illumina on its “unreliable entity” list.
Companies added to the blacklist can be subject to fines and a broad range of other sanctions, including a freeze on trade and revocation of work permits for foreign staff.
Tariffs on Canada paused
In separate negotiations, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have agreed with US President Donald Trump to pause planned tariffs for at least a month. Trump’s tariffs against China are still slated to go into effect on Tuesday.