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China alleges Nvidia contravened antitrust regulations, threatening further investigation

U.S. tech titan Nvidia has been accused of violating China's competition laws, as per a recent investigation, with authorities promising further examination following the second day of trade negotiations between Beijing and Washington.

China Accuses Nvidia of Breaching Antitrust Regulations, Threatens Further Investigation
China Accuses Nvidia of Breaching Antitrust Regulations, Threatens Further Investigation

China alleges Nvidia contravened antitrust regulations, threatening further investigation

Nvidia, a leading AI powerhouse based in California, is currently under investigation by Beijing's top market watchdog, the State Administration for Market Regulation (SAMR). The investigation, announced in December 2024, focuses on alleged monopolistic practices related to Nvidia's 2020 acquisition of Mellanox Technologies.

The SAMR began its antitrust investigation against Nvidia towards the end of 2024, and the probe is still ongoing in 2025. No specific timeline for conclusion has been publicly announced, but the SAMR has indicated that the investigation is continuing intensively as of September 2025.

This investigation underscores the increasing scrutiny of foreign companies operating in China. It is not the first probe by Beijing into foreign companies for alleged antitrust violations. The investigation into Nvidia comes as Beijing and Washington are engaged in trade talks, and the potential impact on U.S.-China trade relations is unclear at this time.

The trade talks between China and the United States are part of an intense contest between the two countries for supremacy in the field of semiconductors. The bilateral trade talks are currently in their second day, taking place in Madrid. Officials from both countries are seeking to narrow differences on a range of issues that have soured ties.

The investigation into Nvidia's alleged antitrust violations has determined that the U.S. chip giant has violated the Anti-Monopoly Law of the People's Republic of China. The implications for Nvidia's operations in China are yet to be seen.

The investigation into Nvidia's business in China could potentially impact U.S.-China trade relations. However, the extent of this impact remains uncertain at this stage. The investigation underscores the increasing importance of adhering to local regulations when operating in foreign markets.

As the investigation continues, both Nvidia and the U.S.-China trade relations will be closely watched by industry observers and policymakers alike. The outcome of the investigation could set a precedent for future investigations into foreign companies operating in China.

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