As President-elect Donald Trump gets ready to assume office for a second term, China has accused U.S. chipmaker Nvidia of breaking its anti-monopoly law. This accusation is likely to worsen already strained economic relations between the two nations.
China’s state market regulatory body said in a statement on Monday that the investigation is connected to Nvidia’s 2019 purchase of Mellanox, a multinational provider of computer networking hardware.
That transaction was tentatively approved by China in 2020.
A request for comment was not immediately answered by an Nvidia representative. Following Monday’s market opening, the company’s stock was down almost 3%.
A new set of export restrictions on U.S.-made semiconductors was unveiled last week by the departing Biden administration in an effort to prevent China from using them to create sophisticated artificial intelligence and weaponry.
China swiftly retaliated by imposing embargoes on vital supplies going to the United States and accusing the country of intimidation and hypocrisy.
The United States engages in unilateral bullying, abuses export control mechanisms, and overstretches the concept of national security, all while preaching and acting in a different way. China’s Commerce Ministry stated in a statement that China strongly condemns such activities.
Although for various reasons, the United States and France have also launched inquiries into Nvidia’s market dominance.
The whole U.S. stock market has increased in value over the last year thanks to the Santa Clara-based startup, whose chips have emerged as the preferred processor for tech companies spearheading the AI revolution. Nvidia is now among the most valuable companies in the world, with its share price having roughly tripled in 2024.
When he becomes office, Trump has pledged to impose strict tariffs on China. A Chinese think tank has accused former Georgia Senator David Perdue of being “anti-China,” and he was recently nominated to be the U.S. ambassador to China. Additionally, he appointed tariff-supporting economist Peter Navarro as his adviser on manufacturing and trade.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!