China announced on Monday that U.S. chipmaking giant Nvidia has been found in violation of its antitrust regulations, with authorities confirming plans for a deeper investigation. The decision comes just as Beijing and Washington entered the second day of bilateral trade discussions.
The State Administration for Market Regulation (SAMR), China’s top market watchdog, revealed that a preliminary inquiry concluded Nvidia had contravened the Anti-Monopoly Law of the People’s Republic of China.
“Following a preliminary investigation, it has been determined that NVIDIA Corporation has violated the Anti-Monopoly Law,” SAMR stated. “The administration has therefore decided to conduct a further investigation in accordance with the law.”
While the regulator did not disclose the specific nature of the alleged violations or provide details of the upcoming probe, the announcement highlights the growing regulatory and political pressure on foreign tech firms operating in China.
The development comes at a sensitive time, as Beijing and Washington remain locked in a broader rivalry over technological supremacy, particularly in the semiconductor sector. The U.S. has tightened restrictions on China’s access to advanced chips, while China has stepped up oversight of American tech companies.
Nvidia, a California-based leader in artificial intelligence and graphics processors, recently reported earnings that triggered fresh concerns about its exposure to the Chinese market, especially amid heightened scrutiny from U.S. regulators.
Interestingly, the announcement from SAMR came roughly an hour before Chinese and U.S. officials sat down in Madrid for a second straight day of trade talks, underscoring the fragile balance between competition and negotiation in the relationship between the two powers.
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