China targets Google amidst US trade war escalation, initiates antitrust investigation against tech giant

Following US President Donald Trump's announcement of tariffs on China, Google became the first American firm to come under fire from the nation. China swiftly announced further tariffs on a number of US items and opened an antitrust probe against internet giant Google in reaction to President Trump's 10% tax on Chinese imports.  The State Administration for Market Regulation declared on that it would probe Google for alleged antitrust violations. At the same time, Beijing levied a 10% tax on oil and farm equipment and a 15% tax on U.S. coal and liquefied natural gas exports.

The trade tensions between the two biggest economies in the world have significantly increased as a result of these events, which might have a substantial impact on both global commerce and economic stability. Although Google continues to run its advertising business in China, its consumer services have been mainly unavailable since 2010. Chinese companies wishing to advertise on Google platforms overseas benefit from these operations.

China's measures are seen by analysts as a warning to American businesses that depend significantly on the Chinese market. China's probe of Google may conclude without any sanctions, according to a CNBC report that quoted Julian Evans Pritchard, head of China economics at Capital Economics. Chinese authorities placed the US genome sequencing business Illumina Inc. and Calvin Klein's owner PVH Corp. on a blacklist of companies, further aggravating tensions. Additionally, new export regulations were put in place for commodities connected to tungsten, which are essential for many different sectors.

"The United States' unilateral imposition of tariffs seriously violates the rules of the World Trade Organization," China's Finance Ministry said in a statement criticizing the US penalties. "In addition to being ineffective in resolving its own issues, it also jeopardizes the regular trade and economic cooperation between the United States and China," it added.