China unveiled a series of measures on Tuesday targeting US businesses, including Google, farm equipment manufacturers, and PVH Corp, the parent company of Calvin Klein, shortly after the imposition of new US tariffs on Chinese goods.
In retaliation to the new US tariffs, China also imposed tariffs on US products like coal, oil, and some automobiles, escalating the ongoing trade conflict between the two largest global economies.
China’s State Administration for Market Regulation launched an investigation into Google, accusing the company of violating the country’s anti-monopoly laws, though no specific details or allegations were provided. Google, which faces a ban on its search engine in China, generates about 1% of its global revenue from the country and works with local partners, including advertisers.
In a separate move, China’s Commerce Ministry added PVH Corp, the owner of Calvin Klein and Tommy Hilfiger, along with US biotech firm Illumina, to its “unreliable entity” list. The ministry accused these companies of engaging in “discriminatory measures” against Chinese firms and “damaging” Chinese businesses’ rights. Companies on this list could face sanctions, including fines, trade freezes, and the revocation of work permits for foreign employees.
PVH expressed surprise and disappointment, stating it adheres to all relevant laws and industry practices and would continue to engage with authorities for a resolution. Illumina did not comment.
Meanwhile, shares of PVH and Illumina dropped nearly 4% in premarket trading, while Alphabet, Google’s parent company, saw a slight increase. PVH had already faced scrutiny from Chinese regulators over its activities related to Xinjiang.
China’s moves were seen as warnings that it is willing to take action against US interests while leaving room for de-escalation. However, analysts suggested the tariffs and investigations could be reversed before implementation.
Additionally, China imposed a 10% tariff on US farm equipment, potentially affecting companies like Caterpillar, Deere & Co, and AGCO, as well as certain US-made trucks and sedans. This could include Tesla’s Cybertruck, which is still awaiting regulatory approval in China. A 10% tariff could be applied to future imports of the electric truck from Tesla’s Texas factory.
Tesla did not comment immediately, and the new tariffs are set to take effect on February 10.
The announcements come amid rising trade tensions, with Beijing and Washington intensifying restrictions primarily in the tech sector, particularly regarding semiconductors. China recently launched an investigation into Nvidia and initiated a security review of Intel’s products sold in China in response to US restrictions on Chinese access to advanced chips.
