China has started an investigation into Nvidia, a leading US computer chip company, accusing it of breaking anti-monopoly rules.
This marks another step in the tech rivalry between the US and China over control of the semiconductor market, according to the BBC.
The BBC reports that Nvidia is being questioned over promises it made when it bought Mellanox Technologies in 2020.
Chinese state broadcaster CCTV confirmed the probe and said it is being carried out legally. Nvidia responded, saying it is willing to work with regulators and always tries to meet its commitments worldwide.
This investigation comes just after the US announced new restrictions last week, targeting 140 companies, including Chinese chip firms like Piotech.
These rules limit their access to advanced technology unless they get special permission. In response, China imposed limits on selling key minerals like gallium and germanium to the US, which are essential for making high-tech products. Analysts told the BBC this move was a clear message aimed specifically at America.
Nvidia, which started in 1993 making chips for video games, now leads in creating chips for artificial intelligence (AI).
It is valued at over $3 trillion. The company’s success has brought attention from regulators globally, including in the US, UK, and China.
However, Nvidia is caught in the middle of growing tensions between the two nations, with both racing to dominate the AI and advanced chip markets.
The BBC highlights that about 13% of Nvidia’s sales this year came from China and Hong Kong. This is less than before, as US restrictions on advanced technology to China have tightened, citing national security concerns.
Experts believe China’s probe into Nvidia is a way to push back against US sanctions. James Lewis from the Center for Strategic and International Studies told the BBC the investigation looks like “retaliation” and sends a message that China won’t keep accepting US restrictions without responding.
He also noted that these tech disputes rarely stop either side from accessing technology but reflect a deeper rivalry.
The BBC explains that this back-and-forth, with sanctions and retaliations, is unlikely to end soon.
Both nations are locked in a battle over control of the tech industry, making Nvidia’s role even more challenging in this heated competition.
Credit : BBC
https://www.bbc.com/news/articles/cx2vkd90mk8o