China announced Tuesday a series of measures aimed at US companies, including Google (Googl.O), manufacturers of agricultural equipment and the company that owns the fashion brand Calvin Kleinminutes after new American tariffs on Chinese products were entered into force.
Beijing also imposed Tariffs to American products such as coal, oil and some carsin immediate response to the new levies imposed by the president of the USA, Donald Trump, on Chinese goods, thus intensifying commercial tensions between the two largest economies in the world.
The state administration for China market regulation reported that Google is suspected of violating the country’s antimonopoolio law and that an investigation has begun in accordance with the regulations. No more details were provided about research or specific accusations against Google.
Google products, such as their search engine, are blocked in China, and their income in the country represents approximately 1% of their global sales. However, the company continues to collaborate with Chinese partners, as advertisers. In 2017, Google announced the opening of a small artificial intelligence center in China, but the project was dismantled two years later, and the company no longer conducts research in the country, according to a blog post.
Other North American companies in the sights
On the other hand, the China Ministry of Commerce included PVH CORP (PVH.N), the parent company of brands such as Calvin Klein and Tommy Hilfiger, and the American biotechnological firm Illumina (ILMN.O) in its list of “non -entities not reliable. ” According to the Ministry, both companies adopted “discriminatory measures against Chinese companies” and “harmed the legitimate rights and interests of Chinese companies.”
Companies added to this list can face fines and various sanctions, including trade freezing and the revocation of work permits for foreign employees.
Google, PVH and Illumina did not immediately respond to requests for comments outside business hours in the US. PVH was already under the scrutiny of Chinese regulators for alleged “inappropriate” behaviors related to the Xinjiang region.
“These movements are warnings that China is willing to harm the interests of the United States. If necessary, but it still leaves margin to back down,” Capital Economics said in a report. “Tariffs could be postponed or canceled before they enter into force … Google research could conclude without sanctions.”
Tesla and manufacturers of agricultural equipment
China also announced 10% tariffs on imports of American agricultural teams, which could affect companies such as Caterpillar (Cat.N), Deere & Co (De.N) and Agco (AGCO.N), as well as an amount Reduced trucks and sedans of large displacement imported from the US.
This measure could impact the Cybertruck of Elon Musk, a niche model that Tesla (Tsla.o) has been promoting in China while waiting for regulatory approval to start its sales.
The Ministry of Industry and Information Technology of China appointed Cybertruck as a “passenger car” in a December publication that was quickly eliminated.
If Cybertruck were classified as an electric truck, Tesla would face a 10% tariff on any future import from its factory in Texas. The new tariffs on American products will take effect on February 10, the Ministry reported.
Tuesday’s ads intensified commercial restrictions between Beijing and Washington, who under the administration of former president Joe Biden had mainly focused on the technological sector, with measures to restrict China’s access to advanced semiconductors.
In December, China informed that he had initiated an investigation against Nvidia (NVDA.O) for an alleged violation of the antimonopoly law, a measure widely interpreted as a retaliation to the recent restrictions of Washington on the Chinese chip sector.
At the end of last year, an influential Chinese industrial group also requested a security review of Intel (intc.o) products sold in the country.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
