China announced Monday that U.S. chipmaker Nvidia has violated its antitrust laws and will face an expanded investigation, a move that came just as trade talks between Beijing and Washington entered a second day.
The State Administration for Market Regulation (SAMR), China’s top market watchdog, said a preliminary probe determined Nvidia had breached the country’s Anti-Monopoly Law. “SAMR has therefore decided to conduct a further investigation into the matter in accordance with the law,” the agency said in a statement.
Authorities did not provide details on the alleged violations or the scope of the new inquiry.
The announcement underscores the growing competition between the United States and China over semiconductors, a sector considered critical for artificial intelligence, defense, and advanced technology.
Nvidia, based in California, has become a dominant player in AI-related chips, though its China business faces mounting pressure amid U.S. export controls and scrutiny from regulators in both countries.
The company reported strong earnings last month but flagged concerns over its prospects in China, where sales have been affected by Washington’s tightening restrictions on advanced chip exports.
The timing of the announcement was notable, coming about an hour before U.S. and Chinese officials resumed bilateral trade talks in Madrid aimed at easing tensions.
China first disclosed the investigation into Nvidia in December, part of broader regulatory efforts targeting foreign firms operating in its market.
The case is the latest example of how trade, technology, and geopolitics remain intertwined in the rivalry between the world’s two largest economies.
