China’s government has announced an anti-monopoly investigation into Alphabet Inc.'s Google and placed two major U.S. firms—PVH Corp, owner of brands like Calvin Klein, and biotechnology company Illumina—on its unreliable entity list.

The announcement comes as tensions between the two largest global economies escalate, following new U.S. tariffs on Chinese goods and China’s retaliatory tariffs on products like coal and oil.

China’s Commerce Ministry accused PVH Corp and Illumina of engaging in discriminatory practices that harmed Chinese companies, leading to their addition to the list.

This designation could result in restrictions on trade and operations for the companies within China.

The State Administration of Market Regulation stated that Google is under investigation for allegedly breaching the country’s anti-monopoly laws.

However, details about the specific violations or the investigation’s scope have not been disclosed.

Although Google’s search engine is blocked in China, the company operates through collaborations with local advertisers and partners.

This investigation signals Beijing’s intent to expand its regulatory scrutiny amid ongoing trade disputes, further affecting key sectors linked to U.S. firms.