 "As the trade war between the US and China continues to intensify, these latest actions underscore the complex and evolving nature of the conflict. Both sides are using a variety of tactics, from tariffs to regulatory probes, to press their respective agendas. Image Credit: Reuters")
In a sharp response to President Trump’s recent decision to impose a 10 per cent tariff on Chinese imports, China has launched antitrust investigations into major US tech companies, including Google, NVIDIA, and Intel.
These moves are seen as part of a larger set of retaliatory measures aimed at exerting pressure on the US during ongoing trade tensions between the two countries. The Chinese government is leveraging its regulatory powers to counterbalance the economic and political pressure created by the tariffs, which are expected to have far-reaching consequences for the companies involved and could further complicate the trade negotiations.
Google faces antitrust investigation
The Chinese antitrust regulator has opened an investigation into Google, although specific details about the scope and focus of the probe are not yet clear. However, sources have indicated that the investigation may concentrate on Google’s Android operating system and its influence over Chinese phone manufacturers.
There are concerns that Google’s control over Android could be limiting competition in the Chinese market, which has a vibrant smartphone industry.
This investigation is significant because, despite Google’s search engine and core services being blocked in China since 2010, the company still maintains a presence in the country through its digital advertising and Google Cloud services.
By targeting Google now, China appears to be using the investigation as a bargaining chip in the broader trade dispute, possibly signalling a more aggressive stance toward US tech companies.
NVIDIA and Intel also under scrutiny
NVIDIA and Intel are also facing potential antitrust probes by Chinese regulators as part of this broader retaliatory strategy. NVIDIA, a major supplier of computer chips, was already under investigation in December for potential violations, following the Biden administration’s decision to restrict China’s access to NVIDIA’s high-end hardware.
The timing of these investigations suggests that China is using the ongoing trade war as an opportunity to challenge the dominance of US chipmakers in the global market. Intel is also reportedly facing scrutiny, although the specifics of the investigation are still unclear.
Both companies, which are integral to the global technology supply chain, are now caught in the crossfire of the trade war, with potential consequences for their business operations in China and other markets.
Retaliatory measures and new tariffs
In addition to the antitrust investigations, China has taken further steps to retaliate against the US by imposing new tariffs and tightening export controls on several critical minerals, including tungsten, tellurium, bismuth, molybdenum, and indium.
While experts suggest that these measures are unlikely to have a major immediate impact on US businesses, they demonstrate China’s willingness to escalate the trade war. In the same vein, China has also imposed new tariffs on US coal, oil, and farm equipment, as well as on companies like the owner of Calvin Klein and Tommy Hilfiger.
These new tariffs are part of China’s broader strategy to counter the US tariffs and maintain leverage in the negotiations. However, analysts believe that these moves, while forceful, leave room for potential de-escalation, as China is still focused on achieving a more favourable trade agreement with the US.
As the trade war between the US and China continues to intensify, these latest actions underscore the complex and evolving nature of the conflict. Both sides are using a variety of tactics, from tariffs to regulatory probes, to press their respective agendas.
For US tech companies, the challenges posed by China’s regulatory moves and new tariffs are significant, potentially reshaping their strategies in one of the world’s largest markets. With tensions running high, it remains to be seen how these investigations and retaliatory measures will play out and whether they will lead to a resolution or further escalation of the trade dispute.