China has launched an antitrust inquiry into Google and imposed taxes on American goods in retaliation for new US tariffs. The action comes after Donald Trump rekindled a trade war between the two biggest economies in the world by deciding to impose a 10% tariff on all imports from China.
Beijing has responded by imposing 10% taxes on gasoline and agricultural equipment and 15% tariffs on US coal and LNG. In the fields of electronics and renewable energy, where China controls global supply chains, the Chinese government has also imposed export restrictions on important minerals.
China Imposes Counter-Tariffs and Rare Earth Export Controls
Within hours of Washington’s latest tariff hike, China’s finance ministry announced reciprocal measures on American exports, effective 10 February. These include:
- 15% tariffs on US coal and LNG
- 10% duties on crude oil, agricultural equipment, and selected automobiles
The move underscores China’s capacity to disrupt key US industries, including energy and manufacturing. The tariffs specifically target sectors vital to the American economy, further straining bilateral trade relations.
Additionally, Beijing’s commerce ministry and customs administration have placed export controls on tungsten, tellurium, ruthenium, molybdenum, and related products. These elements are crucial for semiconductor manufacturing, renewable energy production, and defence technologies—areas where Western economies depend on Chinese supply.
The Chinese government framed the measures as a necessary step to safeguard national security, while also positioning them as a direct counterbalance to Washington’s economic pressure.
Google Targeted in Antitrust Probe as Trade Tensions Mount
China’s State Administration for Market Regulation opened an antitrust probe into Google as the trade spat intensified, alleging that the US internet giant had broken competition regulations. Beijing’s strategic reaction was indicated by the announcement, which was made just minutes after Trump’s tariffs went into force.
Google has long faced regulatory scrutiny in China. The company ceased operations for its search engine in 2011, shifting to Hong Kong after increasing government restrictions. Despite this, it remains active in China’s digital economy through partnerships in app distribution and software services.
This is not China’s first attempt to use antitrust measures against US tech firms. In December, Beijing opened a similar investigation into Nvidia, widely interpreted as a response to Washington’s restrictions on China’s semiconductor industry.
