China is investigating US chip giant Nvidia for violating anti-monopoly law, CCTV says
China launched an investigation into US chip giant Nvidia on Monday for alleged violations of anti-monopoly laws, state television CCTV reported.
The procedure against the semiconductor champion was initiated by public market regulation services and also concerns the violation of a commitment made in 2020, during its acquisition of Mellanox Technologies Ltd, according to CCTV.
This announcement lowered the title of the Californian group, considered the standard-bearer of the generative artificial intelligence (AI) revolution. Nvidia is, in fact, by far the largest producer of so-called GPU (Graphics Processing Unit) chips, also called graphics cards, which are considered essential to the development of generative AI.
This investigation is part of an increasingly tense context between the world’s two largest economies, with the approach of Donald Trump’s return to the White House in January, who has already threatened Beijing to substantially increase customs duties on imports. from China, raising fears of the return of an open trade war.
Last Tuesday, Beijing announced restrictions on its exports of rare metals, including gallium, germanium and antimony, materials essential for the design of solar panels and electronic chips used in many civil and military technologies.
The two countries are competing for global technological domination, a standoff that was particularly virulent during Donald Trump’s first term. He then launched a trade war with China.
Donald Trump’s second term, which will begin on January 20, should be in the same vein, and he has already threatened to increase customs duties, to encourage companies to repatriate all or part of their production in the United States.
For its part, the Biden administration further restricted the export to China of semiconductors and equipment to manufacture them at the beginning of December, citing risks to the national security of the United States, and attracting the wrath of Beijing.
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