China’s government has accused Nvidia (NVDA) of violating the country’s anti-monopoly law after a preliminary probe into the U.S. chipmaker.
China’s market regulator in Beijing added that it will continue its investigation into Nvidia, sending shares of the company down 2% in premarket trading on Sept. 15.
Late last year, China opened an investigation into Nvidia’s acquisition of Israeli technology company Mellanox and some agreements made during that purchase.
Nvidia acquired Mellanox, which creates network solutions for data centers and servers, in a 2020 deal that was initially approved by China.
However, officials in Beijing now say Nvidia violated China’s anti-monopoly laws in relation to the Mellanox purchase. China’s market regulator has not said how Nvidia breached the law.
The accusations against Nvidia come as trade talks between Chinese and U.S. officials resume in Madrid, Spain.
Tensions between China and America appear to be on the rise on the technology front. China has opened two separate probes into semiconductors.
Nvidia has had a difficult relationship with the Chinese market in recent months as the company has been caught up in political tensions between Beijing and Washington, D.C.
Earlier this year, Nvidia’s H20 microchip that had been specially designed to comply with U.S. export restrictions was blocked from being sent to China by President Donald Trump.
However, last month Nvidia cut a deal with the Trump administration that allows the technology giant to sell chips to China in exchange for giving 15% of that revenue to the U.S. government.
NVDA stock has risen 29% this year to trade at $177.82 U.S. per share.
Tech Insider
