China Accuses Nvidia of Antitrust Violations: What You Need to Know

LONDON (AP) — China recently accused Nvidia of breaking its antimonopoly laws and announced tighter scrutiny of the chipmaker. This comes at a time when the U.S. and China are engaged in trade talks.

Chinese regulators found that Nvidia might not have followed the conditions set during its purchase of Mellanox Technologies, a company focused on network and data transmission. Although the State Administration for Market Regulation didn’t specify any penalties, they indicated further investigation would take place.

Nvidia responded by saying they comply with the law and will work with relevant governmental bodies to understand how export controls affect competition in the market.

In December, regulators began looking into Nvidia over potential infractions related to the $6.9 billion deal for Mellanox, which finalized in 2020 after receiving conditional approval from Chinese authorities.

This situation adds to the ongoing trade tensions between Washington and Beijing, particularly surrounding technology and semiconductors. For example, on Saturday, China’s Ministry of Commerce announced it was launching an antidumping investigation into U.S. analog IC chips, which are commonly produced by companies like Texas Instruments and ON Semiconductor. They also opened an investigation into U.S. policies targeting China’s chip sector.

Just a day earlier, the U.S. imposed sanctions on two Chinese firms for acquiring equipment linked to major chipmaker SMIC, heightening the frictions between the two nations.

At the recent talks in Madrid, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed various issues but left many details unclear. They tentatively reached an agreement on U.S. ownership of TikTok, though confirmation from Chinese representatives was lacking.

These negotiations mark the fourth round of discussions, following earlier meetings in London, Geneva, and Stockholm. So far, both governments have agreed to multiple 90-day pauses on increasing tariffs, preventing a full-scale trade war.

Nvidia plays a pivotal role in this U.S.-China trade war, especially with the increasing demand for its advanced chips driven by the boom in artificial intelligence. It’s currently one of the most valuable companies globally. However, it faces challenges, including restrictions on chip exports to China that began under the Biden administration and were reinforced during Trump’s presidency. In July, Nvidia received approval to sell a less powerful version of its graphics processing unit to China, designed to comply with U.S. regulations.

As both nations continue to navigate these complex trade issues, experts emphasize the critical role that technology will play in shaping future relations. According to a recent report from the U.S.-China Economic and Security Review Commission, the ongoing tech battle may significantly influence global market trends and innovation dynamics over the next decade.

This technology rivalry is not just about chips; it also reflects broader ambitions for economic leadership in a rapidly changing world landscape.



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