China has initiated an antitrust investigation into Nvidia, one of the world’s leading chipmakers. The move is seen as retaliation against the United States’ recent tech sanctions on Chinese companies.
Tribune Online recently reports that TikTok has edged closer to a potential ban in the US after losing a legal bid to overturn legislation targeting the app’s Chinese ownership, ByteDance.
The probe, announced on Monday by Chinese state media, is being conducted by the State Administration for Market Regulation to assess potential violations of China’s antimonopoly laws.
Regulators are also set to revisit Nvidia’s $6.9 billion acquisition of Mellanox Technologies, an Israeli-American networking product supplier approved in 2020 under restrictive conditions. Among the requirements, Nvidia was barred from discriminating against Chinese suppliers.
Nvidia, known for its advanced AI chips and valued at over $3.4 trillion, has faced global regulatory scrutiny over its dominance in the semiconductor industry.
Earlier this year, the US Department of Justice launched its antitrust investigation into the company, signaling increasing pressure on Nvidia from multiple jurisdictions.
Shares of Nvidia fell by 2.55% on Monday after news of the Chinese investigation broke. The company has yet to issue a response.
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The probe follows the US Department of Commerce’s decision last week to impose its third round of export controls, restricting advanced technology access for the Chinese chip sector.
These measures placed 140 Chinese firms on the Entity List of blacklisted companies. In retaliation, Beijing banned exports of critical materials like gallium, germanium, and antimony, essential for semiconductors, electric vehicles, and solar panels.
Political scientist Ian Chong noted that Beijing’s actions often carry symbolic weight rather than tangible economic impact. “Nvidia is already heavily restricted from selling in China, so the practical implications of this probe may be limited,” Chong observed, drawing parallels to previous bans on Australian wine and Japanese seafood, which were largely symbolic gestures of disapproval.
While China has targeted US companies such as Intel and Micron in recent years, US-led investigations into Chinese firms like Huawei, ZTE, and TikTok suggest a widening scope in the escalating trade and tech war. Despite restrictions, Nvidia has reportedly adapted by designing China-specific chips, where it continues to earn 15% of its revenue.
According to Reuters, the company is also planning to collaborate with Chinese firm Inspur to release a new AI chip for the Chinese market by 2025.
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