In a bid to gain leverage in its ongoing trade tensions with the United States, China has initiated investigations into several prominent US technology companies, aiming to influence upcoming negotiations with the Trump administration, the Wall Street Journal reports.
Among the companies under scrutiny are Google, Apple, Nvidia, Broadcom, and Synopsys. These moves reflect Beijing’s strategy to utilize antitrust regulations and other tools as bargaining chips in its dealings with the US, particularly in light of the tariffs imposed by President Trump on Chinese goods.
Officials familiar with China’s tactics suggest that the goal is to build a robust portfolio of regulatory actions to use as leverage when negotiating with US counterparts. The investigations into US tech giants are part of a broader effort by Beijing to assert its power in the tech sector and retaliate against the US for its economic measures, including tariffs.
The Chinese government has already targeted Google and Nvidia for alleged antitrust violations. Additionally, Apple and semiconductor companies such as Broadcom and Synopsys have also come under investigation. These actions reflect Beijing’s ongoing concerns about how American firms are operating in the Chinese market, particularly with regard to unfair business practices and competition.
China’s strategy aims to influence executives within Trump’s circle, who have considerable sway in US trade policy. Tech leaders like Sundar Pichai of Google and Tim Cook of Apple, both of whom were seen at Trump’s inauguration, are key figures that Beijing may be attempting to influence. However, this approach carries risks. US companies have become more hesitant to support China under the current administration, and such threats could backfire, leading to reduced investment in China.
In recent years, China has adopted a more assertive regulatory approach, including the creation of an “unreliable entity list” to target foreign firms, similar to the US entity list that restricts Chinese companies like Huawei. Furthermore, in 2022, China amended its antitrust laws to tighten regulations around mergers and acquisitions. These legal changes provide China with additional tools to scrutinize and potentially block deals that involve US tech companies.
The timing of these investigations is crucial. For example, just after the US imposed additional tariffs on Chinese goods, Beijing launched an antitrust probe into Google, following the company’s compliance with US restrictions on Huawei. Similarly, China opened an investigation into Nvidia after the Biden administration imposed restrictions on Chinese access to high-end semiconductors.
Apple has also become a target of Chinese regulators, particularly over its App Store policies. Chinese tech giants like Tencent and ByteDance have raised concerns over the fees Apple charges developers, which some officials argue hinders competition in the local market. While these concerns have been raised globally, China’s regulators have recently intensified their scrutiny of Apple’s practices.
Mergers and acquisitions involving US firms are also a key area of concern. For instance, Broadcom’s proposed $61 billion acquisition of VMware was delayed due to regulatory uncertainty in China. Similarly, Synopsys’s $35 billion deal is facing challenges as China suspends its review of the transaction. Such deals often require approval from multiple global regulators, and Beijing has used the approval process as a tool to exert pressure on American firms.
Despite the risks of alienating US companies, China’s regulatory measures serve as important leverage in its trade negotiations. However, experts caution that China must be careful in its actions, particularly regarding critical technologies and semiconductor companies like Nvidia, which are vital to the country’s own technological development.
