China's Counterstrike: Nvidia's Anti-Monopoly Probe Amid US Chip Curbs

China has launched an investigation into Nvidia over alleged violations of anti-monopoly laws, seen as a response to US restrictions on China’s semiconductor industry. The probe focuses on Nvidia's fulfillment of commitments from its Mellanox Technologies acquisition. Nvidia faces increasing friction amid shrinking Chinese revenue and rising domestic competition.

China announced a probe into Nvidia regarding supposed anti-monopoly violations, interpreted by many as a counter to recent US limitations on China's chip industry. The State Administration for Market Regulation announced the investigation but did not provide specific details on Nvidia's potential breaches.

The inquiry also concerns commitments made by Nvidia during the Mellanox Technologies purchase, as part of conditions set by regulators in 2020. Tensions are escalating in this ongoing trade war as both nations strive for tech dominance, impacting Nvidia's share value negatively.

This investigation follows the US's latest crackdown on China's semiconductor sector and China's ban on exporting critical minerals to the US. Nvidia's dominance in China's AI chip market is being challenged by local competitors like Huawei, as its revenue contribution from China declines.

(With inputs from agencies.)