Google antitrust probe puts Beijing’s software “nationalism” in the spotlight

A probe into Google’s alleged anticompetitive practices by China’s State Administration of Market Regulation (SAMR) may seem like little more than retaliation for Trump’s tariffs. After all, there is little obvious reason, as Google no longer operates a search engine business in the country, despite failed efforts to push censored versions. 

But Google does have a large presence in China through its mobile operating system. Android captured about 70 percent of the market in 2024, even though it lost ground to Huawei’s Harmony OS, now at 15 percent market share. In October 2024, Huawei released the first fully native version of Harmony, HarmonyOS Next. Chinese commentators speculate that Android may be the focus of SAMR’s probe.

The move is revealing of China’s larger mission to replace all foreign hardware and software. This xin chuang campaign (信创, loosely translated as information technology innovation) started in 2018 after the US targeted Huawei and ZTE with trade restrictions. China has systematically stepped up efforts to replace foreign hardware and software, although the exact extent and success is unclear, as very little about the campaign has been made public. According to a Chinese consultancy, the goal is to build “a whole supply chain, and a complete industry” (全产业链、全行业). 

Rebecca Arcesati, Lead Analyst, MERICS: “China’s self-reliance campaign extends beyond semiconductors to also include core software like operating systems. This software nationalism is only poised to deepen. Google was a good target, as US and EU regulators are also scrutinizing its monopolistic practices.”