China has launched an investigation into Google over alleged anti-competitive business practices. This is seen as retaliation for the US imposing an additional 10% tariff on goods imported from China since yesterday. Although Google does not have a large operation in China, it still has advertising business relationships with local companies.
Among Google's business practices that are expected to be investigated by the State Administration for Market Regulation is the requirement to include various applications such as the Play Store, YouTube and Google Maps on Android devices that want to use Google Mobile Services.
In addition to Google, PVH Corp, the parent company of fashion brands Calvin Klein and Tommy Hilfiger, and biotechnology company Illumina are also being investigated by China. PVH Corp is accused of discriminatory practices and damaging the interests of local companies.
New tariffs were announced by President Trump on Canada, Mexico and China last week, taking effect on Tuesday as the three countries are accused of unfair trade practices with the United States. Trump then did not proceed with tariffs on Canada and Mexico after a last-minute agreement was reached and there was a negative reaction from citizens who did not want to see the prices of imported goods skyrocket.