HONG KONG — On Tuesday, China unveiled a series of retaliatory actions against the United States, which included imposing tariffs on imports such as coal, liquefied natural gas, and crude oil. In addition, an antitrust investigation into Google was launched. Furthermore, two additional American companies were added to a list of unreliable entities, which could restrict their investment opportunities in China.
China and Google share a complicated history that dates back to the early 2000s. Google’s engagement with China began when it introduced its Chinese-language search engine, google.cn, in 2006. This search engine operated under censorship to adhere to Chinese regulations, and by 2009, it commanded approximately 36% of the market share within the country. However, in 2010, following a cyberattack and growing concerns over censorship compliance, Google made the decision to withdraw from the mainland, shutting down its Chinese operations and redirecting users to its Hong Kong platform. Subsequently, Chinese authorities blocked access to Google services, including Gmail and the Chrome browser, rendering them unavailable on the mainland.
Generally, the Chinese government restricts access to most Western internet platforms, including Google, as well as popular social media services like Facebook and Instagram.
While Google no longer has its services accessible in China, the tech giant continues to maintain a business presence there, primarily focusing on its advertising operations. Google’s workforce includes employees dedicated to Cloud services and customer solutions. The company has offices located in prominent cities such as Beijing, Shanghai, and Shenzhen.
The investigation into Google is being conducted by China’s State Administration for Market Regulation, which suspects the company of breaching antitrust regulations. Limited details have been provided regarding the specific issues under scrutiny; however, the timing of the announcement coincided closely with the commencement of a 10% tariff set by U.S. President Donald Trump.
The impact of the investigation on Google remains uncertain, as specifics are scant. Nonetheless, experts do not anticipate immediate disruptions to Google’s operations due to the probe, which could extend over several months. Google has refrained from commenting on this investigation so far.
Some analysts speculate that the investigation might focus on Google’s Android operating system for smartphones, suggesting it serves as a bargaining chip in the ongoing trade conflict between the United States and China. John Gong, an economics professor, indicated that the investigation may revolve around Google’s significant influence in the Android market, noting that most smartphone manufacturers—aside from Apple and Huawei—are required to pay licensing fees to utilize the Android system. He remarked, “Now, this time, Google is put on the chopping board. But I think it’s still an investigation, right? It hasn’t reached a decision yet. I think it’s very much negotiable.”
In response to the restrictions placed on it by the U.S. government in 2019, Huawei has independently developed its own HarmonyOS operating system, as it was put on the U.S. entity list, which designates organizations seen as threats to national security.
Google has faced antitrust allegations in several nations, including the European Union, South Korea, Russia, India, and Turkey, accused of misusing its market power.
