China's antitrust watchdog is evaluating a possible investigation into Apple's App Store policies and developer fees, a move that could heighten tensions between Beijing and Washington in an escalating trade conflict,

China's State Administration for Market Regulation is preparing to investigate Apple's App Store policies and the fees it imposes on app developers.

China is the latest regulator probing Apple's App Store, as developers want lower fees, and third-party app stores and payment systems.