US Vs China Trader War Imminent? Beijing Launches Antitrust Probe Into Google. Here's Why

Google withdrew its search engine operations from China in 2010 over censorship disagreements and cybersecurity concerns.

Details of the Google probe remains vague.

Source : Mitchell Luo/Unsplash

Beijing announced a series of trade countermeasures and a significant antitrust investigation into Google on Tuesday, in response to recent tariffs imposed by former US President Donald Trump on Chinese imports, Associated Press (AP) reported. The latest escalation has raised concerns about a potential prolonged trade conflict between the two economic superpowers.

The Chinese Ministry of Finance confirmed that it would introduce a 15 per cent tariff on coal and liquefied natural gas (LNG) products, along with a 10 per cent tariff on US imports of crude oil, large-engine vehicles, and agricultural equipment. These tariffs are slated to take effect next Monday.

'Unhelpful In Solving Its Own Problems'

A statement from a finance ministry official emphasised that Washington’s decision to unilaterally increase tariffs violated World Trade Organization (WTO) rules, warning that such actions could harm global trade relations. “It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the US,” the statement noted, referring to US's unilateral tariff hike.

China’s retaliatory move comes as it remains the largest global importer of liquefied natural gas, though the US represents only a marginal share of those exports. According to the US Energy Information Administration, China imported 173,247 million cubic feet of LNG from the US in 2023, accounting for just 2.3 per cent of America’s total LNG export volume.

China’s State Administration for Market Regulation (SAMR) revealed it had initiated an antitrust investigation into Google for suspected monopolistic practices. While the details of the probe remain vague, the announcement closely followed the implementation of Trump's additional 10 per cent tariffs.

Google, which withdrew its search engine operations from China in 2010 over censorship disagreements and cybersecurity concerns, maintains a limited presence in the country. The tech giant has yet to issue an official statement regarding the investigation, as per the AP report.

Market analysts have expressed apprehension about the implications of China’s measures, reported AP. 

Further exacerbating tensions, China announced export restrictions on critical elements necessary for modern technological production, including tungsten, tellurium, molybdenum, and indium. These materials are considered vital by the US Geological Survey for national security and economic stability.

In addition, Beijing placed PVH Group, owner of Calvin Klein and Tommy Hilfiger, and biotechnology firm Illumina on its unreliable entities list. This designation bars them from engaging in import or export activities in China and prohibits new investments in the country.

China's DeepSeek In Troubled Waters As Well

Meanwhile, a new development emerged in Europe, where Belgian authorities confirmed receiving a privacy complaint against Chinese AI firm DeepSeek. A spokesperson for the Belgian data protection agency refrained from commenting on ongoing complaints but acknowledged the filing. Luxembourg’s data watchdog indicated it might collaborate with European counterparts to assess potential risks associated with DeepSeek's latest version and data processing practices.

With the stakes rising on multiple fronts, the evolving situation poses significant challenges for international trade, technology cooperation, and diplomatic negotiations between key global players.