Why China is launching an investigation into Nvidia ?

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China has just taken a very strong step by launching an antitrust investigation into Nvidia, the American company that is at the forefront of the AI ​​revolution with its electronic chips. Here is everything you need to know about this decision and its implications.

Why China is investigating Nvidia ?

Chinese state television (CCTV) announced on Monday, December 9 that the government believes that Nvidia’s purchase of the Israeli company Mellanox was likely to violate the country’s anti-monopoly laws. The authorities had in fact validated this acquisition worth 7 billion dollars in 2020 by attaching a condition to it.

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 Les Échos rightly mentions, it is difficult not to see in this initiative a form of retaliation for the sanctions decided in the United States.

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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 drugs.

The technological war is in full swing

This measure only confirms recent events that have occurred in the context 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 American technologies to opposing countries.

Very quickly, China responded by banning the export of several rare minerals to the United States. A strong gesture, since these are used for the construction of solar panels, LEDs, batteries and other major electronic products. More information on this subject in our previous article here.

A little over a month before Donald Trump returns to the White House, each camp has decided to show its muscles. Only the future will tell us whether these ambitions are sustainable, or whether 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 motive, most observers see it as a continuation of the technology war with the United States
• A few weeks before Donald Trump returns to power, tensions are rising between the two countries

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