Nvidia is facing an antitrust probe from China's State Administration for Market Regulation, highlighting tensions between the US and China over technology and trade. The investigation seems tied to Nvidia's past acquisition of Mellanox, approved four years ago but now scrutinized under allegations of anti-monopoly violations. This move is perceived as retaliation against US export restrictions, indicating a broader conflict in the ongoing chip wars affecting global tech relations.
China's SAMR has announced an investigation into Nvidia due to suspected violations of anti-monopoly law. The focus appears connected to Nvidia's $7 billion acquisition of Mellanox, which was approved years ago, sparking questions about the timing and reasoning for this inquiry. According to regulatory statements, the probe will assess whether Nvidia imposed unreasonable trading conditions in the Chinese market, reflecting a potentially changing landscape for foreign companies operating in China.
The investigation's announcement coincides with heightened tensions over tech exports, particularly after the US implemented new restrictions on advanced technology related to AI and semiconductors. These US actions have been interpreted as efforts to limit China's access to crucial tech capabilities, prompting retaliatory measures from Beijing, such as this probe against Nvidia. Analysts suggest that the timing of this investigation is linked to the broader geopolitical struggles affecting the semiconductor industry globally.
In a recent statement, Nvidia's share price reacted negatively to the news but later rebounded, highlighting market volatility tied to geopolitical shifts. Nvidia is seeking clarity regarding the allegations made by SAMR, emphasizing the company's commitment to comply with global regulations. Industry experts are watching this situation closely, as it could set a precedent for how foreign tech firms navigate China's regulatory environment amid ongoing trade tensions between the two leading superpowers.
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