China Targets Nvidia With Antitrust Probe Amid Ongoing Tech Trade Tensions

China accused Nvidia on Monday of breaking antitrust rules and signaled it would tighten oversight of the U.S. chip giant, raising tensions just as trade negotiations between the two countries were underway. Regulators said a preliminary review showed Nvidia failed to fully comply with conditions tied to its acquisition of Mellanox Technologies, a networking and data transfer company.

In a brief statement, the State Administration for Market Regulation stopped short of announcing penalties but confirmed it would pursue a deeper probe. Nvidia responded by saying it respects all legal requirements and will continue working with regulators as they assess how U.S. export controls affect competition in commercial markets.

The agency first disclosed in December that it was examining possible violations linked to Nvidia’s $6.9 billion purchase of Mellanox, which closed in 2020 with Beijing’s conditional approval. The latest announcement coincided with trade talks in Madrid, reflecting ongoing friction between Washington and Beijing over technology, particularly semiconductors and manufacturing equipment.

At the same time, Chinese authorities said they are also investigating alleged discriminatory U.S. policies against the country’s chip industry. The move came a day after Washington imposed sanctions on two Chinese firms accused of helping SMIC acquire restricted equipment.

Talks in Madrid between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng wrapped up Monday, with U.S. officials claiming a framework deal had been reached on American ownership of TikTok. Chinese negotiators, however, did not confirm such an agreement. This marked the fourth round of discussions following earlier meetings in London, Geneva, and Stockholm, which have repeatedly produced temporary pauses on escalating tariffs.

Nvidia, meanwhile, continues to deal with U.S. restrictions on high-end chip exports to China, measures introduced under President Joe Biden and reinforced by Donald Trump. In July, the Trump administration granted the company approval to sell its pared-down H20 GPU to China, a product designed to comply with export rules.