China has escalated trade tensions with the United States by imposing a series of retaliatory measures on American businesses, minutes after new US tariffs on Chinese goods took effect. The latest development intensifies the ongoing economic standoff between the world’s two largest economies, as both sides continue to exchange trade restrictions.
In a swift response, China’s Ministry of Commerce announced that it had placed US biotechnology firm Illumina and PVH Corp, the parent company of global fashion brands Calvin Klein and Tommy Hilfiger, on its “unreliable entity” list. The ministry accused the companies of engaging in discriminatory practices against Chinese enterprises and harming their legitimate interests. Businesses included on this blacklist face a range of punitive actions, including fines, restrictions on trade, and even the revocation of work permits for foreign staff.
Adding to the pressure, China’s State Administration of Market Regulation has launched an anti-monopoly investigation into Google, alleging violations of competition laws. While the specifics of the case were not disclosed, the move marks a significant escalation in Beijing’s scrutiny of major US firms. Google’s search engine and several of its services have long been blocked in China, but the company maintains business ties within the country through local partnerships, particularly in advertising.
Meanwhile, China’s Ministry of Finance has unveiled fresh tariffs on a selection of US imports, including farm machinery and certain automobiles, imposing a 10% duty on these products. Industry analysts suggest that the move could have far-reaching consequences for American manufacturing giants such as Caterpillar and Deere & Co. These new tariffs are set to take effect from 10 February.
The response from Washington came after President Donald Trump’s administration imposed additional levies on Chinese imports over the weekend, citing economic security concerns. China, in turn, has been forthright in its opposition to these measures, vowing to defend its economic interests through legal channels, including a possible appeal at the World Trade Organization.
PVH Corp had already been under scrutiny from Chinese regulators over its handling of issues related to the Xinjiang region, which remains a focal point of geopolitical tensions. The company, along with Illumina and Google, has yet to issue a formal response to China’s latest actions.
With no immediate resolution in sight, the tit-for-tat trade measures between Beijing and Washington continue to heighten uncertainty in global markets, raising concerns over the broader economic implications of an escalating trade war.
