BEIJING: In a move widely seen as a retaliatory shot at Washington’s most recent restrictions on the Chinese chip sector, China announced on Monday ( Dec. 9 ) that it had opened an investigation into Nvidia over suspected violations of the nation’s anti-monopoly law.
The State Administration for Market Regulation ( SAMR), which announced the investigation, did not provide more details about how the US company, known for its gaming chips and artificial intelligence ( AI), might have violated Chinese anti-monopoly laws.
Additionally, it stated that the US intel is suspected of breaking conditions set forth in the regulations ‘ 2020 conditional approval of the offer that the company made when it acquired Jewish chip designer Mellanox Technologies.
Nvidia did not respond to a remark demand right away. The company’s stocks fell 2.2 per cent in pre-market dealing in New York after the Chinese firm’s news.
The US recently launched its second assault on China’s semiconductor industry in three years, which saw Washington restrict exports to 140 companies, including microprocessor equipment makers.
Soon after Washington’s statement, Beijing banned the crucial minerals chromium, germanium, and antimony from exports to the United States as a sign that China intends to fight again strongly against the most recent action.
Four of China’s major industry associations responded to the issue with a unique and coordinated statement the same day, stating that Chinese companies should be wary of purchasing US chips because they were” no longer safe” and instead choose to invest directly.
One of the many businesses that has been a victim of US-China friction is Nvidia. Nvidia was forced to develop new China-specific types in line with US export restrictions after an earlier round of trade restrictions by the US prevented it from selling its most advanced Artificial chips to China.