China on Monday accused US chipmaker Nvidia of violating its anti-monopoly law, a move likely to escalate already tense trade ties between the two countries as newly elected President Donald Trump prepares to take power for a second time .
China’s state market regulator said the investigation is linked to Nvidia’s 2019 acquisition of Mellanox, a global supplier of computer networking equipment.
China had conditionally approved that acquisition in 2020.
A spokesperson for Nvidia did not immediately respond to a request for comment. The company’s shares fell about 3% after markets opened Monday.
Last week, the outgoing Biden administration announced a new set of export controls on U.S.-made semiconductors aimed at limiting China’s ability to use them to develop weapons and advanced artificial intelligence systems.
China immediately responded by accusing the US of bullying and hypocrisy while issuing US embargoes on critical materials
“The US preaches one thing while practicing another, excessively broadening the concept of national security, abusing export control measures, and engaging in unilateral acts of bullying. China firmly opposes such actions,” the Chinese Ministry of Commerce said in a statement.
The US and France have also opened investigations into Nvidia’s market dominance, albeit on different grounds.
Over the past year, the Santa Clara-based company, whose chips have become the processor of choice for tech companies leading the AI revolution, has driven up the entire U.S. stock market. By 2024, Nvidia’s share price will almost triple, making it one of the most valuable companies in the world.
Trump has promised to impose tough tariffs on China if he comes to power. He recently selected former Georgian Senator David Perdue, accused by a Chinese think tank of being “anti-China,” as US ambassador to China. He also brought in anti-tariff economist Peter Navarro as a trade and manufacturing adviser.
This article was originally published on NBCNews.com
