Nvidia Faces Fresh Scrutiny in China
China’s antitrust regulator has accused Nvidia, the world’s leading chipmaker, of breaking the country’s competition laws, marking the latest flashpoint in the escalating technology rivalry between Beijing and Washington.
The State Administration for Market Regulation (SAMR) announced on Monday that Nvidia had violated commitments it made during its 2020 acquisition of Mellanox Technologies, an Israeli-founded networking equipment firm. The regulator said the U.S. company failed to uphold promises aimed at preventing anti-competitive practices and ensuring stable supply to China.
Antitrust Probe Launched During U.S.-China Trade Talks
The timing of the announcement coincided with trade negotiations between U.S. and Chinese officials in Madrid. Chinese authorities revealed that their investigation into Nvidia began in December last year and will continue further.
The move comes just days after the U.S. government blacklisted 23 Chinese firms from purchasing American technology over national security concerns. In response, Beijing said it was investigating American suppliers of certain integrated circuits, escalating the tit-for-tat measures between the two economic powers.
Nvidia Caught in Middle of AI Rivalry
Nvidia, which has seen soaring global demand for its AI chips, did not immediately respond to requests for comment. The company has become one of the world’s most valuable firms but is now caught in the geopolitical struggle for dominance in artificial intelligence.
Chief Executive Jensen Huang has repeatedly stressed that access to the Chinese market is critical to Nvidia’s growth. Earlier this year, he persuaded U.S. President Donald Trump to allow limited chip sales to China—a decision that faced strong backlash from critics who argued it could boost China’s tech capabilities.
China Signals Tougher Stance on Foreign Firms
China’s move against Nvidia highlights its growing willingness to target foreign technology companies through antitrust laws, something once considered rare. Luo Wen, the head of SAMR, has pledged that China will play a leading role in shaping global antitrust rules and will intensify scrutiny of foreign acquisitions in advanced tech sectors.
In July, Chinese internet regulators summoned Nvidia to address alleged security risks in one of its chips developed for the Chinese market, claiming the hardware could be remotely disabled or used to track user locations.
With investigations now expanding, it remains unclear what penalties or remedies Beijing may impose on Nvidia. For now, the company finds itself at the center of a widening U.S.-China battle over technology supremacy.
