China targets US tech giants in escalating Trade War. Image: Asia Times
(The Post News)- China has targeted U.S. tech giants with antitrust probes, retaliating against U.S. restrictions on Chinese firms. Chinese officials have sought to influence people in the tech industry who are in Trump’s circles, which has cited people familiar with the matter.
Beijing’s retaliation went beyond imposing tariffs. Shortly after Trump’s 10% tariffs on China took effect, Beijing launched an antitrust probe into Google in the previous week. Furthermore, China outlined trade tariffs on some U.S. commodity imports along with export restrictions on rare earth materials to the U.S. Google’s China probe has limited practical impact. Google’s services have been blocked there for over a decade. China is reportedly weighing an antitrust probe into Apple, a move that could have far more severe repercussions. Apple heavily relies on China, as a market and manufacturing hub.
Beijing’s security concerns have led to restrictions on government employees using Apple products, contributing to the tensions. Guo Jiakun, a Chinese Foreign Ministry Spokesman was asked about the tariffs and has responded saying that there are no winners in a trade war or a trade war in Beijing. He says that it harms the interests of both peoples.
Jiakun further explains that what is needed is not the unilateral imposition of tariffs but dialogue and consultations based on equality and mutual respect. He urges the U.S. side to stop its wrongdoing and avoid politicizing and instrumentalizing economic and trade issues. The Trump administration announced tariffs on China, Canada, and Mexico, but delayed some after last-minute negotiations succeeded. Head of China economics at Moody’s Analytics, Harry Murphy Cruise says it is unknown as to when President Xi and President Trump will meet and discuss, and where the discussions will head. Murphy Cruise says the risk is that it goes down a similar route to last time where it’s tit-for-tat. China’s economy is struggling with real estate crises, debt, and deflation, making U.S. trade tensions particularly challenging. The U.S. inflation concerns may prompt the Trump administration to reconsider raising tariffs, potentially softening trade tensions with China.
On Sunday, Trump said more was coming, claiming to impose tariffs of 25% on all imports of steel and aluminum. Moreover, he also threatened tariffs on Taiwan, Europe, and others.
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