China has launched a high-profile investigation into Nvidia, the world’s most valuable chipmaker, accusing it of violating anti-monopoly laws and commitments tied to its 2020 acquisition of Mellanox Technologies. This move wiped nearly $123 billion (£96.2 billion) off Nvidia’s market value in early Wall Street trading, highlighting the intensifying trade war between the U.S. and China. The investigation comes just weeks before Donald Trump’s return to the White House, where he has pledged to impose additional tariffs on Chinese imports.
The probe follows the Biden administration’s recent blacklisting of hundreds of Chinese semiconductor firms in its latest crackdown on China’s tech industry. This marks the third significant U.S. restriction in three years, targeting 140 companies, including chip equipment makers, to limit China’s access to advanced technologies. The escalating measures from both nations underline the growing economic and technological rivalry between the superpowers.
Trump has vowed to raise the stakes further, announcing a 10% tariff on all Chinese goods upon taking office in January. With Nvidia caught in the middle of this geopolitical clash, the trade war is increasingly reshaping the global semiconductor market and deepening tensions between the world’s largest economies.
Source: The Telegraph - China Investigates Nvidia Amid Rising U.S.-China Tensions
