Apple Inc ( AAPL ) shares are trading lower Wednesday. New reports indicate Chinese antitrust officials are preparing a potential probe into Apple’s policies and App Store fees.

What To Know: The State Administration for Market Regulation is looking into Apple’s App Store policies including the fees it charges on in-app spending and the payment services the company makes available to App Store users, according to Bloomberg.

People familiar with the matter reportedly said Chinese regulators have held talks with Apple ( AAPL ) executives and App Store developers since last year. The talks are reportedly focused on disputes between Apple ( AAPL ) and Chinese developers of popular apps.

Although the talks reportedly began before U.S. President Donald Trump took office, the news comes amid rising trade tensions between the U.S. and China after Trump announced sweeping 10% tariffs on all Chinese imports. China responded with tariffs of its own. The country also launched a formal probe into Google on Tuesday within seconds of the U.S. tariffs going into effect.

People familiar with the matter said China could launch a formal probe against Apple ( AAPL ) if the company pushes back against changes. Chinese regulators reportedly believe Apple ( AAPL ) may be charging “unreasonably high” fees and hurting competition through the barring of third-party app stores and payment methods.

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Last year, Apple ( AAPL ) overhauled its App Store practices in the European Union to comply with new requirements under the Digital Markets Act. The European Commission fined Apple ( AAPL ) more than 1.8 billion euros ($1.95 billion) for preventing companies from sharing payment options outside of Apple's ( AAPL ) App Store. Apple ( AAPL ) has said it plans to challenge the ruling.

Apple ( AAPL ) has heavy exposure to China as it manufactures most of its iPhones in the country. China is also the second-biggest market for smartphones, computing and AI products after the U.S.

Apple ( AAPL ) reported $18.51 billion in fourth-quarter Greater China sales last week, down from $20.82 billion in the prior year’s quarter.

AAPL Price Action: Apple ( AAPL ) shares were down 1.54% at $229.35 at the time of publication Wednesday, according to Benzinga Pro.