This is a very strong measure that China has just decided by launching an antitrust investigation against Nvidia, the American company which is at the forefront of the AI revolution with its electronic chips. Here’s everything you need to know about this decision and its implications.
Why is China investigating Nvidia?
Chinese state television (CCTV) announced this Monday, December 9 that the government believes that Nvidia’s purchase of the Israeli company Mellanox was likely to violate national anti-monopoly laws. The authorities had in fact validated this acquisition worth $7 billion in 2020 by attaching a condition.
Thus, Mellanox must inform its Chinese rivals 90 days in advance when it supplies a new product to Nvidia. The Middle Kingdom will therefore check whether this condition is met. But beyond this detail, and as rightly mentioned The Echoesit is difficult not to see in this initiative a form of retaliation for the sanctions decided in the United States.
Our colleagues also point out in this regard that investigations into foreign companies are very rare in China. Among the emblematic cases, we remember investigations targeting AstraZeneca for alleged fraud and illegal importation of medicines.
The technological war is in full swing
This measure only confirms recent events occurring within the framework of this economic confrontation between these two powers. Last week, we learned that the US Department of Commerce added 140 Chinese companies operating in the electronic chip sector to a blacklist aimed at preventing imports of US technology to opposing countries.
Very quickly, China responded by banning the export of several rare minerals to the United States. A strong gesture, as these are used for the construction of solar panels, LEDs, batteries and other major electronic products. More information on this in our previous article here.
With just over a month to go until Donald Trump returns to the White House, each camp has decided to flex its muscles. Only the future will tell us if these attempts are lasting, or if the two parties manage to find some common ground after playing the balance of power.
What to remember:
- China launches antitrust investigation into chip giant Nvidia
- Beyond the official reason, most observers see it as a continuation of the technological war with the United States.
- A few weeks before Donald Trump’s return to power, tension is rising between the two countries
