China’s antimonopoly regulator announced on Monday that it was investigating potential violations of antitrust law by Nvidiapop party online casino, the American company that makes a vast majority of the computer chips that power artificial intelligence systems.
The inquiry, a rare move by Beijing, comes a week after the Biden administration expanded curbs on the sale of advanced American technology to China. In the days since, the Chinese government announced that it would ban the export of several rare minerals to the United States and imposed sanctions on more than a dozen U.S. defense firms and defense industry executives.
Together, the moves by Beijing signal its willingness to engage in supply chain warfare as the policy contest over trade and the control of technology escalates between the world’s two largest economies.
The battle has made A.I. chips into one of the world’s most sought-after technologies, and Nvidia has cornered the market, accounting for 90 percent of global sales by the end of last year. Nvidia’s dominance helped it become one of the most valuable companies in the world over the past year.
Graham Webster, an academic focused on geopolitics and technology at Stanford University, said China had a variety of tools it could use to go after foreign companies and show its opposition to U.S. policy. “Nvidia is a pretty obvious target,” he added.
China’s State Administration for Market Regulation said on Monday that it was investigating Nvidia for violating commitments made during its acquisition of Mellanox Technologies, a company that makes computer networking equipment. The Chinese regulator approved Nvidia’s acquisition of the company in 2020 with conditions to prevent anti-competitive practices and ensure supplies to China.
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