admin Beijing’s move to probe Nvidia (NVDA.O) under its anti-monopoly laws marks a significant escalation in US-China technology tensions. This investigation, announced by China’s State Administration for Market Regulation, follows Washington’s recent chip export curbs, seen as retaliatory measures. The probe also questions Nvidia’s compliance with commitments made during its acquisition of Israeli chip designer Mellanox Technologies in 2020.
The investigation signals Beijing’s reaction to US sanctions that restricted exports to Chinese companies and imposed bans on advanced Nvidia AI chips. As a dominant player in China’s AI chip market, Nvidia faced challenges even before these restrictions, losing market share to local rivals like Huawei. The move comes as China’s government intensifies efforts to push for self-sufficiency in critical technologies.
Nvidia’s spokesperson expressed willingness to cooperate, emphasizing its commitment to providing high-quality products globally. However, the company’s share price fell by 2.5% following the news. The probe is reminiscent of past actions against foreign tech firms, such as Qualcomm in 2013, which faced a hefty fine from China over similar concerns.
This antitrust action underscores the growing complexities in Sino-US relations, particularly in the semiconductor sector. As the geopolitical landscape shifts, Nvidia’s operations in China are increasingly under scrutiny, highlighting the challenges multinational firms face amid these tensions.
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