Report Suggests Intel Facing Potential Scrutiny from Chinese Regulators

Please note that this content is not investment advice. The author currently holds no shares in any of the companies mentioned.

Following President Trump’s recent announcement of tariffs on China, the country’s regulatory authority has initiated an investigation into Google for alleged anticompetitive behavior. China’s State Administration for Market Regulation (SAMR) has indicated that Google may not be the sole focus of this scrutiny. According to reports from the Financial Times, authorities are also considering launching an investigation into Intel following NVIDIA’s inquiry initiated last year.

Investigation Targeting Google Amidst Regulatory Scrutiny

SAMR issued a brief press statement today confirming the probe into Google. A translated version of their release states:

Because Google is suspected of violating the Anti-Monopoly Law of the People’s Republic of China, the State Administration for Market Regulation has launched an investigation into Google in accordance with the law.

Interestingly, the announcement did not adversely affect Google’s stock performance, which saw an increase of 0.80% in premarket trading.

Although the specifics of the investigation remain somewhat vague, the Financial Times reports that the inquiry will primarily focus on Google’s Android operating system and its potential anticompetitive impacts on Chinese manufacturers like Xiaomi and Oppo, who utilize Android technology in their devices.

Furthermore, while the investigation into Google is officially underway, speculation surrounding a potential investigation into Intel has surfaced. Intel maintains manufacturing capabilities in China, particularly involved in packaging and testing laptop processors.

The source cited by the Financial Times emphasizes that the possibility of Intel facing an official inquiry will depend largely on the evolving relationship between the U. S.and China. This recent announcement forms part of broader retaliatory measures by China following the recent U. S.tariff declarations.

SAMR officials made a visit to Google’s local offices, seeking additional information related to the investigation. It’s worth noting that Google is not only contending with challenges in China; the company has been involved in regulatory battles with the U. S.Justice Department throughout 2024. These conflicts have sparked conversations about the potential divestiture of certain Google assets, including Android and the Chrome browser. Within China, Google’s search engine is banned, making Android a critical focal point for regulatory challenges.

The partnership between Google and Apple, wherein Google pays to have its search engine set as the default on Apple devices, has also attracted regulatory attention. By contrast, Intel has faced less scrutiny but experienced a minor decline of 0.80% in premarket trading at the time of this report.

Additionally, China has blacklisted U. S.firms PVH and Illumina in actions that seem directed at companies deemed non-essential to American exports. Previous communications from the Chinese government have criticized PVH for allegedly discriminating against Chinese products, although the implications and timeline regarding these restrictions remain uncertain.

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