In the ongoing tariff showdown between China and the United States, the Chinese Communist Party has announced an investigation into Google. According to sources, the CCP is also gearing up to investigate Apple and its App Store fee policies. Analysts believe that these series of measures by the CCP will escalate the risk of decoupling the Chinese and American economies.
On February 4th, just minutes after the U.S. President Trump imposed a 10% tariff on Chinese imports, the State Administration of Market Supervision of China announced an investigation into Google for alleged violations of anti-monopoly laws, without providing further details.
Google withdrew from the Chinese market in 2010, with its core products like search engine no longer operating in China, but still providing the Android system to Chinese smartphone manufacturers. This investigation could bring uncertainty to Google’s business in China.
On February 5th, Bloomberg reported, based on insider information, that the State Administration of Market Supervision of China is reviewing Apple’s policies, including charging up to 30% commission on purchases within applications and prohibiting third-party app stores and payment services.
It was noted that since last year, Chinese anti-monopoly regulators have been in communication with Apple executives and app developers, but the review comes at a time of rapidly escalating tensions between China and the United States as they may be on the brink of a large-scale trade war.
Insiders mentioned that if Apple refuses to make changes, the government may initiate a formal investigation.
According to Apple’s policy, Apple charges a 30% commission on in-app purchases and subscriptions for apps with annual revenues exceeding $1 million, while small-medium developers with revenues lower than $1 million are charged a 15% commission.
However, in November last year, Apple disclosed the revenue situation of Chinese developers and the app ecosystem in 2023. Apple stated that over half of the payment commissions enjoyed by developers were at a 15% discounted rate, and in the Chinese developer community, most people did not need to pay any commission to Apple.
Former Chief Economist of UBS Group, George Magnus, told Radio Free Asia that with the U.S. imposing tariffs on Chinese goods, the CCP may use American tech giants as bargaining chips, taking direct measures or export controls to counter U.S. trade restrictions, and might even target Tesla in the future.
He said, “If it ultimately leads to tit-for-tat trade restrictions, China’s options will be more limited, as China imports far less from the U.S. than the U.S. imports from China. This means that China may directly target American companies and use export controls.”
Riley Walters, an international economic expert at the Hudson Institute in Washington, told Radio Free Asia that “Beijing is clearly willing to retaliate against the U.S. indiscriminately. This means that companies and executives from any industry could now become targets.”
Walters stated that the CCP’s series of measures will weaken the confidence of multinational corporations in the Chinese market and intensify the risk of economic decoupling between China and the United States.