China Launches Antitrust Probe into Google Amid Escalating Trade Tensions

Taylor Brooks

Taylor Brooks

February 04, 2025 · 3 min read
China Launches Antitrust Probe into Google Amid Escalating Trade Tensions

In a swift and dramatic escalation of trade tensions, China has launched an antitrust investigation into Google, citing alleged monopolistic practices by the US tech giant. The move comes just days after US President Donald Trump imposed a 10% tariff on Chinese goods, sparking a retaliatory response from Beijing.

The probe, announced by China's State Administration for Market Regulation, will examine Google's business practices in the country, where the company has maintained operations primarily focused on advertising despite having its search and internet services blocked since 2010. According to the administration's statement, the investigation was launched "in accordance with the law" due to suspicions of Google violating the Anti-Monopoly Law of the People's Republic of China.

The antitrust probe is just one of several retaliatory measures taken by China in response to the US tariffs. Beijing has also imposed a 15% levy on US coal and liquefied natural gas exports, as well as a 10% tariff on oil and agricultural equipment. Additionally, Chinese authorities have added Calvin Klein owner PVH Corp. and gene sequencing company Illumina to a restricted entities list, and implemented new export controls on tungsten-related materials.

The escalating trade tensions between the world's two largest economies have sparked concerns about the potential impact on global trade and the tech industry. The move against Google, in particular, has raised eyebrows, given the company's significant presence in China despite the restrictions on its core search and internet services. The investigation could have far-reaching implications for Google's business operations in China, as well as the broader tech industry.

Experts say the antitrust probe is likely a negotiating tactic by China to gain leverage in trade talks with the US. "This is a classic example of China using its regulatory powers to push back against the US," said Andy Mok, a trade expert at the Center for American Progress. "By targeting a high-profile US company like Google, China is sending a clear message that it will not be pushed around."

The trade tensions between the US and China have been simmering for months, with both sides imposing tariffs on each other's goods. The latest escalation has sparked concerns about the potential for a full-blown trade war, which could have devastating consequences for the global economy.

As the situation continues to unfold, one thing is clear: the tech industry is caught in the crosshairs of a high-stakes game of trade brinksmanship. With China's antitrust probe into Google, the stakes have been raised, and the world is watching to see how this drama will play out.

This is a developing story, and we will continue to provide updates as more information becomes available.

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