China hits back at Trump’s tariffs with an antitrust investigation into Google and a new 15% tax on U.S. coal and gas
US president Donald Trump launched the “Silvo Opening” in his second commercial war on Tuesday, when a 10 % new tax entered the Chinese goods into effect.
Beijing took revenge shortly after. China will impose a 15 % tariff on American coal imports and LNG, and a 10 % tariff on crude oil, agricultural machines, large engine cars, and captured trucks, according to a statement issued by the Ministry of Finance.
Separately, the Chinese market administration to regulate the market said it will launch an investigation into Google for anti -competition practices. Samr’s statement did not explain how Google violates the law.
Google withdrew the search product from China in 2010 due to fears of censorship, however it still maintains offices in the country for its advertising work.
China is increasingly installing the anti -monopoly muscles against non -Chinese technology companies. In 2023, SAMR highlighted a deal between the semiconductors of Intel and Tower by failing to submit timely approval to integrate. Then, last December, China announced that it would launch an anti -pregnancy in NVIDIA because of its acquisition of mellanox technologies.
Finally, China has identified the owner of Calvin Klein Pvh Corp. The Illumina is a biotechnology company as “unreliable entities”, a name that can lead to punitive measures by Beijing. Last September, Beijing said it would be achieved in PVH to boycott cotton cotton in Xinjiang.
How does markets interact with new definitions?
On Monday, the United States was late to impose a new tariff on China and Mexico for 30 days. Trump said he was affected by the new taxes after the two countries agreed to deploy forces to strengthen the borders of each of them with the United States
Trump also said he could speak to Chinese President Xi Jinping as soon as possible this week. The two leaders spoke the last time on the phone on January 17, days before Trump took office.
Asian markets rose on Tuesday, although the gains were subjected to a little back when both the American tariff entered into force, followed by the declared revenge of China. Investors were particularly optimistic about Chinese technology companies, as the Hang Seng Tech Index increased by approximately 4.5 %.
The CSI 300, which tracked the 300 best companies traded in Shanghai and Shenzhen, fell 0.28 % in early trading on Wednesday. The markets have been closed on the main mainland of China since January 28 due to the Chinese New Year holiday.
Why does Trump impose a new tariff on China?
Trump has suggested that the new tariff by 10 % is the result of China’s lack of control of the flow of fentanel to Beijing in the United States and Washington, some collaborators have cooperated on fentanel in recent years, including an anti -speculation working group launched in January last year.
On Tuesday, the Chinese Finance Ministry accused the United States of violating the rules of the World Trade Organization, and said that the new definitions will not help the United States solve its problems.
The new Trump tariff may put 0.4 percentage points from the growth of GDP of 2025 in China, Larry is, the chief economist in China in Makari, in a note published on Monday. According to HU, the new stimulus of 500 billion yuan ($ 70 billion) can compensate for clouds for growth.
February 5, 2025: This piece was updated with the latest standard CSI 300 movements as an incorrectly mentioned previous version that the main righteous Chinese market opened on February 4.
This story was originally shown on Fortune.com
2025-02-04 08:34:00
