China has initiated an investigation into Nvidia Corp for potential violations of the country’s anti-monopoly laws, marking a new development in the ongoing chip-related tensions between Beijing and Washington. 

The State Administration for Market Regulation (SAMR) announced on Monday that the probe focuses on Nvidia’s adherence to commitments it made during its acquisition of Mellanox Technologies in 2020. The announcement led to a 2.2% drop in Nvidia’s shares during premarket trading. 

This investigation comes on the heels of recent U.S. measures restricting chip exports to numerous Chinese companies, further escalating the tech and trade conflict between the two superpowers. 

Nvidia, a dominant player in China’s AI chip market, faces increasing competition from domestic firms, including Huawei, as geopolitical frictions reshape the semiconductor industry landscape. 

Market analysts view the investigation as part of China’s broader strategy to counterbalance U.S. restrictions while bolstering its domestic technology sector. The outcome of the probe could have significant implications for Nvidia’s operations and market position in China, one of its largest and most critical markets. 

This move underscores the intensifying global competition over semiconductor technology and the broader implications for international trade relations. (ILKHA)