China has announced that American chip company Nvidia is under investigation for breaking the country’s antitrust laws.
The decision was revealed on Monday by Beijing’s market regulator, which said earlier checks showed the company had gone against competition rules.
The State Administration for Market Regulation explained that it will now carry out a deeper investigation to understand the case fully. While the announcement did not give details about what exact rules were breached, it makes clear that China is keeping a close eye on how the chip industry operates within its borders.
This move comes as China and the United States remain locked in a struggle for control of the global semiconductor market, a sector that is central to technology, artificial intelligence, and advanced computing. The tension has grown in recent years as both countries push to secure an advantage in chip production and supply.
Nvidia, based in California, is one of the leading names in the AI and semiconductor space. Last month, the company released financial results that raised questions about its activities in China, at a time when Washington has increased restrictions on advanced technology exports to the country.
The announcement of the investigation came almost at the same time as trade officials from both sides began a second day of talks in Madrid. These discussions are aimed at reducing friction in the economic relationship, but the new case involving Nvidia shows how sensitive and contested the technology field remains.