The move by Chinese regulators came a week after the Biden administration expanded curbs on the sale of advanced U.S. technology to China.The New York Times reports that Chinese regulators have launched an investigation into potential antitrust violations by Nvidia, the American company responsible for producing the majority of computer chips used in artificial intelligence systems. This move by Beijing comes just a week after the Biden administration expanded restrictions on the sale of advanced U.S. technology to China. In response, the Chinese government has also announced a ban on the export of rare minerals to the U.S. and imposed sanctions on several American defense firms and executives.
These actions by China demonstrate their willingness to engage in supply chain warfare as the trade and technology competition between the two largest economies intensifies. A.I. chips have become a highly sought-after technology, with Nvidia holding a dominant position in the market, accounting for 90% of global sales last year. This has contributed to the company’s rise as one of the most valuable in the world.
According to Graham Webster, an academic at Stanford University, China has various tools at its disposal to target foreign companies and show its opposition to U.S. policies. He believes that Nvidia is a clear target for China in this regard.
The State Administration for Market Regulation in China stated that the investigation into Nvidia is related to the company’s acquisition of Mellanox Technologies in 2020. The Chinese regulator had approved the acquisition with conditions to prevent anti-competitive practices and ensure continued supplies to China.
Source:Read More