China announced a series of new measures on Tuesday targeting U.S. businesses, including tech giant Google, farm equipment manufacturers, and the owner of Calvin Klein, as trade tensions between the U.S. and China escalate. These actions followed the implementation of new U.S. tariffs on Chinese goods, with Beijing responding by imposing its own tariffs on U.S. products, such as coal, oil, and certain autos.
China’s State Administration for Market Regulation launched an investigation into Google, suspecting the company of violating the country’s anti-monopoly laws. While the details of the investigation remain unclear, it marks the latest development in the strained relationship between China and the U.S. Google, whose search engine and other services are blocked in China, derives only about 1% of its global revenue from the country. Despite this, it continues to collaborate with Chinese partners, particularly in advertising.
Alongside the Google probe, China’s Commerce Ministry added two U.S. companies to its “unreliable entity” list: PVH Corp, which owns brands like Calvin Klein and Tommy Hilfiger, and biotech firm Illumina. China accused both companies of taking actions that harmed Chinese enterprises and violated their rights. Being placed on this blacklist subjects companies to fines, trade restrictions, and other sanctions, such as the revocation of work permits for foreign employees. PVH expressed surprise at the decision, emphasizing its compliance with Chinese laws, while Illumina did not respond to media inquiries.
In addition to these measures, China also introduced 10% tariffs on U.S. farm equipment imports, potentially impacting firms such as Caterpillar, Deere & Co, and AGCO. The tariffs could also affect Tesla’s Cybertruck, as China may apply tariffs to this electric truck, pending regulatory approval. Tesla did not immediately comment on the development.
These actions intensify the ongoing trade conflict between the U.S. and China, particularly in sectors like technology and agriculture. Experts suggest that these measures are intended to signal China’s willingness to retaliate against U.S. interests while leaving room for de-escalation. The new tariffs will take effect on February 10, 2025.
