China targets US tech giants like Nvidia and Apple as trade war escalates

Neither the US nor China seems willing to back down, and that means the trade fight is likely to continue.

China is ramping up scrutiny on US tech giants like Nvidia, Apple, and Google, using antitrust investigations and regulatory delays to retaliate against US trade restrictions, as reported by the Wall Street Journal.

The trade battle between the US and China is getting more intense, and now some of the biggest names in American tech are caught in the crossfire. According to The Wall Street Journal, China is stepping up its scrutiny of companies like Nvidia, Apple, Google, Broadcom, and Synopsys, using regulatory hurdles and antitrust investigations to push back against US trade restrictions.

This is part of Beijing’s strategy to fight back against Washington’s crackdown on Chinese access to advanced tech, particularly in semiconductors. With both countries tightening restrictions, the world’s biggest tech firms are being pulled deeper into a trade war that shows no signs of slowing down.

How China is turning up the pressure on US companies

China is using its regulatory powers to make life more difficult for US companies operating within its borders. One key move, as reported by The Wall Street Journal, is Beijing’s decision to delay approval of Synopsys’ $35 billion acquisition of Ansys, a major deal in the semiconductor design space. By slowing down or blocking such deals, China is sending a message: if the US is going to limit China’s access to tech, Beijing will make it harder for American companies to do business in China.

Nvidia, already dealing with US export restrictions on selling high-end chips to China, is facing additional scrutiny in one of its biggest markets. Apple, which depends on China for both manufacturing and sales, is also under the microscope, with Beijing looking for ways to exert control over foreign firms that rely on the Chinese economy.

Retaliation: A familiar tactic

China’s latest moves mirror what the US has done in the past. Washington has imposed trade restrictions on Huawei, limited China’s access to advanced semiconductors, and passed the CHIPS Act to reduce dependence on Chinese manufacturing. Now, China is responding with its own version of economic pressure, using US tech firms as leverage.

But this approach isn’t without risks. If China makes it too difficult for US companies to operate there, these businesses might start looking for alternatives. Many companies are already thinking about shifting production to Southeast Asia, India, or other regions to reduce their reliance on China’s economy. If that happens on a large scale, China could lose out on billions of dollars in investment.

What this means for Global Tech

For big tech companies that operate in both the US and China, the ongoing trade war is creating serious uncertainty. Companies like Nvidia, Apple, and Google rely on China not just for production but also for a huge chunk of their revenue. If tensions keep escalating, these firms might be forced to rethink their long-term strategies, including where they manufacture and sell their products.

At the same time, global supply chains could get even more complicated. If companies start moving away from China, it could lead to higher costs and slower production times, affecting everything from consumer electronics to AI technology.

What’s next?

Neither the US nor China seems willing to back down, and that means the trade fight is likely to continue. China’s increased scrutiny of US tech firms signals that it’s ready to use regulatory roadblocks and economic pressure to push back against Washington’s policies. But at the same time, if American businesses start pulling out of China, it could hurt Beijing’s economy in the long run.

With both countries locked in a battle for technological and economic dominance, the impact will go far beyond just these two superpowers. As the trade war drags on, global tech companies, supply chains, and even consumers will feel the ripple effects.