China targets PVH, Google and other US firms as trade tensions escalate

(Source: Reuters)

China on Tuesday announced a wide range of measures targeting US businesses including Google, farm equipment makers and fashion brand Calvin Klein’s owner, minutes after additional US tariffs on Chinese goods took effect.

The measures were announced as Beijing also slapped tariffs on some US products such as coal and oil in a rapid response to the new US duties on Chinese goods, and mark escalating trade tensions between the world’s two biggest economies.

China’s Commerce Ministry said it had put PVH Corp, the holding company for brands including Calvin Klein and Tommy Hilfiger, and US biotechnology firm Illumina on its “unreliable entity” list.

It said the two companies took what it called “discriminatory measures against Chinese enterprises” and “damaged” legitimate rights and interests of Chinese companies.

Companies added to the blacklist can be subject to fines and a broad range of other sanctions, including a freeze on trade and revocation of work permits for foreign staff.

Separately, China’s State Administration of Market Regulation said Google was suspected of violating the country’s anti-monopoly law, and it had initiated an investigation into the company in accordance with the law. It did not offer any further details on the investigation or on what it alleged Google had done to breach the law.

Google products such as its search engine are blocked in China, but it works with local partners such as advertisers in the country.

Google, PVH and Illumina did not immediately respond to requests for comment outside regular US business hours.

PVH had already been under scrutiny from Chinese regulators over “improper” conduct related to the Xinjiang region.

China’s Finance Ministry also announced 10 per cent tariffs on farm equipment and some autos that could impact US firms such as Caterpillar and Deere & Co.

The new tariffs on US products will start on February 10, the ministry said.

  • Reporting by Beijing bureau and Farah Master in Hong Kong; Writing by Miyoung Kim; Editing by Jamie Freed, of Reuters.

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