Nvidia faces China antitrust probe in response to chip restrictions

China has begun an investigation of Nvidia over alleged antitrust violations in what’s been interpreted as retaliation for expanded US restrictions on chips.

The Chinese State Administration for Market Regulation (SAMR) didn’t say just how Nvidia violated the country’s competition laws. However, it did allege that Nvidia broke promises made to China when buying networking giant Mellanox in 2020.

We’ve asked Nvidia for comment and will let you know if we hear back.

The probe comes less than a week after the US imposed new restrictions on China’s access to AI-related chips. The move barred China from buying fast memory from both US-based companies like Micron as well as foreign firms like Samsung and SK Hynix.  The Commerce Department also put more limits on manufacturing tech, although it made sure US partners like Japan still had access.

At the time, China accused the US of abusing “export control measures” that “hindered” trade. The nation said it would protect its interests, but didn’t elaborate on its response.

If this is a retaliatory measure, it doesn’t come as a surprise. The US and China have been embroiled in a trade battle for years, particularly when officials from the States and other countries accused Huawei of enabling Chinese government surveillance of foreign networks. China has long denied the accusations, but Huawei is banned from both selling in the US and from using many American components. In May, the US pulled Intel and Qualcomm licenses that let them export certain products to Huawei.

The US measures have had only a limited impact in some cases. Huawei’s smartphone business has rebounded in China, with phones like the Mate 60 narrowing the gap with the US and South Korea while using locally-made chips. There are concerns the country is using workarounds to access and replicate US tech despite restrictions. In that light, China’s move against Nvidia is more symbolic than a practical response to lasting damage.

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