China has launched an investigation into Google for suspected violations of its Anti-Monopoly Law, escalating tensions between Beijing and Washington. The probe, announced by China’s State Administration for Market Regulation on February 4, follows a recent move by the US to impose 10% tariffs on Chinese goods. While the details of the allegations remain unclear, the investigation signals growing scrutiny of US companies operating in China, particularly amid an ongoing trade dispute, as reported by AFP.
Google, one of the world’s most influential tech firms, has long been excluded from the Chinese market due to the country’s strict internet controls. The company abandoned its Chinese-language search engine in 2011 and relocated its services to Hong Kong. By 2014, China had blocked Gmail, its email service, marking a significant retreat from one of the world's largest and most lucrative markets. Despite this, Google’s ongoing relationship with China remains a point of interest for Beijing, which is increasingly sensitive to foreign firms it believes are undermining its economic interests. Meanwhile, across the Taiwan Strait in Taipei, a region claimed by China, there have been no such issues, highlighting the stark contrast in the free speech challenges Google faces when navigating its relationship with Beijing.
Alongside the Google investigation, Beijing also expanded its "unreliable entities" list to include US fashion group PVH Corp. and biotech company Illumina. PVH, which owns well-known brands like Tommy Hilfiger and Calvin Klein, is being investigated for allegedly boycotting cotton from China's Xinjiang region. The region has come under international scrutiny for alleged human rights violations, including forced labour accusations. Illumina, a major player in the biotech industry, is also accused of violating market transaction principles and disrupting normal trade with Chinese companies.
This move comes after the US imposed additional tariffs on Chinese goods in an effort to address the flow of illegal migrants and drugs, including fentanyl, into the United States. The measures have deepened the trade rift between the two countries, raising concerns over the potential for further escalation.
As tensions rise, China’s increasing regulatory action against US firms operating in its market serves as a reminder of the growing geopolitical risks faced by multinational companies.