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China chose how to respond to US sanctions

The US government's persecution of the Chinese company Huawei Technologies over the past two years is just one example of political pressure on the business. TikTok, WeChat, and SMIC — these names have been in the news for a long time in the context of new sanctions. Sources say China has a response plan that will affect Google's interests.

Reuters reported this with reference to its own sources. According to the plan of the Chinese authorities, the Chinese response to the actions of the American authorities will be to involve the American corporation Google in proceedings for violations of the antimonopoly legislation of the PRC. Moreover, in the laws of the PRC, norms have recently appeared that make it possible to more flexibly assess the degree of a company's influence on the market, and the values of marginal fines prescribed in them have noticeably increased. It is alleged that Chinese regulators will be inspired by the example of their European counterparts when imposing the size of the fine, which in 2018 forced Google to pay $5.1 billion and refuse to block competing search engines on smartphones running Android.

It is not entirely clear how Google can be accused of abusing its position in the Chinese market, given that many of the company's branded services in China are simply prohibited. Most likely, we are talking about the Android operating system or the history of Google's relationship with Huawei. The latter has recently completely lost access to the Android software ecosystem, as a result of which it is scheduled to release its own software platform Harmony OS next year.

According to Huawei's own estimates, as a result of the US sanctions, it lost about $12 billion in revenue in 2019. Difficulties with the operation of Google software products on Huawei smartphones also led to the loss of consumer confidence, this factor can be used in court to determine the amount of the fine. The decision to start an investigation into Google, the Chinese regulators should make in October this year. It is reported that it was Huawei that was one of the initiators of such an investigation.

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