China has opened an antitrust investigation against Google – and Nvidia and Intel are also in the Beijing reticle as part of a set of reprisals after President Trump imposed a new 10% rate on Chinese imports.
The Chinese antitrust regulator has not provided details on the Google probe or which part of the company it would target – but Sources have told the Financial Times that it would focus on the Android operating system and if Google’s control on the software had injured Chinese phone manufacturers.
Chinese officials said in December that they were investigating the American supplier of NVIDIA computer flea for potential antitrust violations. This decision occurred shortly after the Biden administration limited China’s access to high -end NVIDIA equipment.
Chinese regulators also reflect on a formal probe against Intel, according to the FT. More details on a potential case against the giant of the manufacture of Tamias were not immediately clear.
“All of this is part of a biggest poker game with high issues between the United States and China in terms of commercial negotiations,” said Wedbush analyst Dan Ives, in a note. “In the middle of the AI revolution, there are many chips on the table, the first being Tiktok and the 75 -day window under the clock to conclude an agreement.”
The Google survey will take place despite the fact that the company’s search engine and other basic services have not been available in China since 2010. Reports.
The actions of Google Parent Alphabet increased by almost 2%. The company will publish income after the bell on Tuesday. NVIDIA shares increased by 1.6%. Intel actions were flat.
Trump argued that prices are necessary to rebalance existing commercial transactions. The president imposed 10% of rights to all imports from China and 25% on imports from Mexico and Canada – although he took a break the last two after talking with the country’s leaders.
Trump and Chinese chief Xi Jinping were not to talk about the commercial dispute on Tuesday, despite opposite previous reports.
In retaliation, China has tightened export controls on five critical minerals – tungsten, tellurium, bismuth, molybdenum and indium – although experts say that this decision is unlikely to have a major impact on American companies, according to The Wall Street Journal.
Beijing has also added new American coal and oil prices as well as certain agricultural equipment manufacturers and the owner of Calvin Klein and Tommy Hilfiger.
“These measures are warnings that China intends to harm American interests if necessary, but always give China the possibility of retreating,” said Capital Economics in a note.
“The probe against Google could conclude without any penalty,” added the firm.
Despite most China products, Google still has offices in Beijing, Shanghai and Shenzhen and maintains certain operations related to its digital advertising and Google Cloud.
Google draws approximately 1% of its world revenue from China.
The survey in China is yet another regulatory headache for Google, which was determined last August to have a monopoly on online research in the United States and is currently waiting for a judge on potential remedies, including a possible break.
A distinct federal antitral case targeting Google’s digital advertising activities is also underway.
With postal wires