Beijing, China – Following the imposition of a 10% tariff on Chinese goods by U.S. President Donald Trump, China swiftly responded by launching an antitrust investigation into Google on Tuesday. The investigation, led by China’s State Administration for Market Regulation, aims to scrutinize alleged monopolistic practices by the U.S. tech giant, which has been facing restrictions in China since 2010 but continues to operate there primarily in the advertising sector.

According to the translated statement from the State Administration for Market Regulation, Google is suspected of violating China’s Anti-Monopoly Law, prompting the launch of the investigation. In addition to probing Google, Beijing also imposed a 15% levy on U.S. coal and liquefied natural gas exports, along with a 10% tariff on oil and agricultural equipment. The Chinese government further added companies like PVH Corp., the owner of Calvin Klein, and Illumina, a gene sequencing company, to a restricted entities list. They also implemented new export controls on materials related to tungsten.

The escalation in trade tensions between the United States and China came as a result of Trump’s justification for the tariffs, citing Beijing’s failure to prevent the flow of illegal drugs. These actions disrupted what seemed to be a stabilizing phase in relations between the two largest economies in the world.

The heightened scrutiny on Google is part of China’s efforts to ensure fair competition within its market and to address concerns related to monopolistic practices. This move signifies China’s commitment to enforce its Anti-Monopoly Law and to regulate the operations of foreign companies within its borders.

As the investigation unfolds, the impact on Google’s operations in China and the broader implications for U.S.-China trade relations remain uncertain. The ongoing trade tensions and retaliatory measures between the two countries continue to shape the economic landscape and global market dynamics.