China has started a broad spectrum of actions against US corporations, including Google, agricultural machinery manufacturers and the parent company of Calvin Klein, just moments after Donald Trump raised new US rates on Chinese imports.
In a rapid retaliation for Trump's tariffs, new measures occurred to China that place duties over US exports such as coal, crude oil and selected cars, intensifying tensions between the two largest economies in the world.
The state administration for market regulation in China revealed that Google was suspected of contravening the country's antimonopoolio legislation and this caused an official investigation. However, the specific details about the alleged violations or nature of Google's misconduct were not announced.
Despite the fact that the Google search engine and several of its services cannot operate in China, the company still obtains approximately 1% of its world revenues from the regions as a result of collaborations with Chinese advertising companies.
In 2017, Google launched a modest installation of artificial intelligence research in China, although the initiative was dismantled two years later. A corporate blog post confirmed that the company currently does not participate in AI investigation within the country.
Meanwhile, the China Ministry of Commerce placed PVH CORP, the parent company that supervises brands such as Calvin Klein and Tommy Hilfiger, together with the American biotechnology company Illumina, in its “unreliable entity” record.
The Ministry accused these companies of carrying out “discriminatory measures against Chinese companies” and violating the legitimate rights and interests of Chinese companies.
Although Google has not yet issued a statement, PVH expressed its “surprise and deep disappointment regarding the ministry's decision. The company emphasized that it adheres to” strict compliance with all relevant laws and regulations and operates in line with the standards and established industry practices. “PVH reaffirmed its commitment to commit to Chinese authorities in search of a” positive resolution. “
After the announcement, the actions of PVH and Illumina saw decreases of almost 4% each in the commerce prior to US trade, while Alphabet, Google's matrix entity, recorded a 1% gain.
PVH had already been under regulatory scrutiny in China for alleged “inadequate” behavior linked to the region.
Tesla and agricultural equipment manufacturers are also affected
China also revealed a 10% rate on agricultural machinery imports in the United States, which affect manufacturers such as Caterpillar, Deere and Agco. The new tasks extend to certain models of high -power high power trucks and silks from the United States to China.
Cybertruck de Tesla, which the company has been actively marketing in China while waiting for the regulatory approval of sales, could also be affected. In December, the China Ministry of Industry and Technology classified Cybertruck as a “passenger car” in an online publication that was later eliminated.
If the authorities officially classify the Cybertruck as an electric truck, any future import of the Texas de Tesla installation would be subject to a 10%tax. Tesla has not issued a statement on the matter.
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Trump Rate: China retaliates with 15% in coal, 10% in crude oil