The Chinese government announced Tuesday it is opening an investigation into Google in response to 10 percent tariffs imposed on Chinese imports by US president Donald Trump. Minutes after the tariffs went into effect, China’s State Administration for Market Regulation said it was probing the American tech giant for potentially violating the country’s anti-monopoly law.
The Chinese government may have strategically chosen to go after Google because it has limited operations in the country, ensuring the hit to the US tech giant would be relatively minimal. The move gives China plenty of room to escalate if the Trump administration announces further tariffs or other trade measures. Google declined to comment.
China also announced it was putting more restrictions on the sale of some critical minerals like tungsten and slapping additional tariffs on farm equipment, pickup trucks, liquified natural gas, coal, and other goods from the US. While the US isn’t reliant on China for all of the impacted minerals, the country does control the majority of the world’s tungsten supply, which is used in light bulbs, semiconductors, and ammunition.
“China’s position is firm and consistent. Trade and tariff wars have no winners,” China’s Ministry of Foreign affairs said in a statement Sunday shortly after the tariffs were announced. “This move cannot solve the US’s problems at home and, more importantly, does not benefit either side, still less the world.”
China has kept Google in its crosshairs during the ongoing trade war with the US over the last few years. In 2020, the government reportedly considered opening an antitrust investigation into Google’s Android business, according to Reuters. The deliberations followed a complaint from Chinese telecommunications giant Huawei, which was targeted by Trump during his first term.
Because of US sanctions, Huawei is unable to use American-made software like Google Mobile Services, a suite of tools widely used across the smartphone industry. The restrictions forced the company to develop its own operating system called Harmony OS.
But most smartphones around the world still run on Android, which has sparked competition investigations in a number of countries, some of which have led to concessionary changes designed to give consumers and app developers more choices and lower fees. In China, several smartphone makers continue to rely on an open source version of Android.
This past December, Chinese authorities also opened an anti-monopoly investigation into Nvidia, the chipmaker whose GPUs play a crucial role in the development of generative AI and have become a significant source of trade sparring between the US and China. The announcement came soon after the Biden administration further tightened China’s access to high-end semiconductors.
About 15 years ago, Google stopped offering a search experience tailored for China following a series of Chinese government-linked cyberattacks against it and other US companies. Google debated reentering China with a search engine about seven years ago, but the project was scuttled following protests from some employees concerned about supporting Chinese surveillance and censorship.
Google has also stopped short of directly selling cloud technologies in China, as local laws could threaten the privacy and security assurances it offers to customers in other markets. Other Google services such as YouTube are blocked by Chinese internet regulators.
China has allowed domestic companies to buy advertisements through Google so that they can market to customers abroad. But the revenue from those deals is relatively small, and China didn’t even garner a mention in parent company Alphabet’s annual financial report last year. That stands in contrast to Meta, which lists China among its biggest markets in terms of advertiser location and said last year that China-based advertisers account for 10 percent of its annual revenue.
