China has accused Nvidia, the world’s most valuable chipmaker, of violating its antimonopoly laws, intensifying a long-simmering technology rivalry with the United States. The announcement, made on Monday, September 15, 2025, by China’s State Administration for Market Regulation (SAMR), comes at a particularly sensitive moment: just as top officials from both countries are meeting in Madrid for crucial trade discussions.
According to the Associated Press, the Chinese regulator’s preliminary investigation found that Nvidia failed to comply with conditions imposed when it purchased Mellanox Technologies—a major network and data transmission company—in a $6.9 billion deal completed back in 2020. The deal was initially greenlit by Beijing, but only after Nvidia agreed to certain conditions, including a guarantee to continue supplying its chips to China. Details about the specific violations remain vague, as the regulator’s terse statement did not mention any penalties or outline exactly how Nvidia had fallen short. However, SAMR made it clear that a “further investigation” would proceed.
This regulatory move is the latest in a rapid-fire series of tit-for-tat actions between Washington and Beijing as they vie for dominance in the semiconductor sector. On Saturday, just two days before the Nvidia announcement, China’s Ministry of Commerce launched an antidumping probe into certain analog integrated circuit (IC) chips imported from the U.S.—products commonly produced by industry giants like Texas Instruments and ON Semiconductor. The ministry also unveiled a separate antidiscrimination investigation into U.S. measures targeting China’s chip sector, as reported by The Hill and CNBC.
These developments come on the heels of the United States adding 23 Chinese firms to its export blacklist, citing national security concerns. In response, China announced that it was investigating American suppliers of certain integrated circuits, escalating the already fraught trade relationship. As negotiations in Madrid unfolded, U.S. Treasury Secretary Scott Bessent openly acknowledged the “poor timing of the Nvidia investigation the day of these talks,” according to The New York Times. The talks, which began Sunday and are scheduled to run through Wednesday, represent the fourth round of high-stakes discussions after previous meetings in London, Geneva, and Stockholm.
Nvidia, headquartered in Santa Clara, California, has found itself caught up in the crossfire of this global contest. The company, which has become synonymous with the artificial intelligence boom, has repeatedly faced export restrictions imposed by both the Biden and Trump administrations. These measures, aimed at curbing China’s access to advanced American technology, have forced Nvidia to walk a diplomatic tightrope. In July 2025, the company received U.S. approval to sell its H20 graphics processing unit to China—a less powerful chip specifically designed to comply with export controls. Yet, even this product’s journey into the Chinese market has been rocky. Earlier this year, China blocked the H20 chip from entering its market, citing cybersecurity concerns, until Nvidia cleared a regulatory review, as reported by The Wall Street Journal.
In a statement provided to multiple outlets, including The Hill and CNBC, a spokesperson for Nvidia said, “We comply with the law in all respects. We will continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets.” The company’s shares reflected the uncertainty, slipping by 1.6%—or $2.81—to $175.01 in premarket trading on Monday, according to Reuters.
Legal experts and industry watchers see China’s move as part of a broader strategy. Lester Ross, a partner at WilmerHale who advises companies on doing business in China, told The New York Times, “This is part of a broader effort by the Chinese government to use the regulatory weapons at its disposal, and diplomatic negotiations, to increase China’s access to advanced semiconductors as well as to surpass foreign competitors, ultimately reducing their dependence.” China’s antimonopoly regulator, led by Luo Wen, has signaled an intent to influence global antitrust norms and ramp up scrutiny of foreign acquisitions in advanced tech industries. Cases like Nvidia’s, though rare, can drag on for years without resolution, keeping companies guessing about their future in the Chinese market.
The roots of the current dispute go back to 2020, when Nvidia acquired Mellanox Technologies, an Israeli-American company specializing in networking solutions for data centers and servers. China approved the deal but placed conditions designed to prevent anti-competitive practices and ensure Chinese access to Nvidia’s chips. However, the situation grew complicated when the Biden administration tightened export controls on advanced chips to China in late 2024. Chinese regulators later argued that by complying with these U.S. controls, Nvidia had violated its pledge to maintain an uninterrupted supply of chips to Chinese customers and to treat them equally—a position echoed by antitrust lawyers familiar with the case, according to The Wall Street Journal.
Jensen Huang, Nvidia’s outspoken CEO, has not shied away from the political fray. He has publicly lobbied for American firms to be allowed to sell to China, warning that if U.S. companies are shut out, domestic Chinese players like Huawei will quickly fill the void. Huang has projected that China’s artificial intelligence market could reach about $50 billion within the next two to three years—a tantalizing prize for any technology firm. His advocacy appeared to pay off last month when Nvidia struck a deal with Washington allowing it to resume chip sales to China, in exchange for giving up 15% of revenue from those sales to the U.S. government. Discussions continue over the possibility of exporting even more advanced chips to China, highlighting the ongoing tug-of-war between commercial opportunity and national security.
The scrutiny on Nvidia comes as its chips are increasingly seen as the backbone of global AI infrastructure. The company’s rapid ascent has made it a symbol of the broader struggle for technological supremacy between the U.S. and China. The stakes are high—not only for Nvidia and its investors, but for the future of global innovation and the rules that will govern it.
As of now, it remains unclear what remedies or penalties China’s regulator might ultimately seek from Nvidia. The company’s experience serves as a cautionary tale for foreign firms navigating the unpredictable currents of Chinese regulatory policy. With both sides wielding an expanding arsenal of trade and regulatory tools, the outcome of this high-profile investigation could shape the next chapter in the global tech rivalry.
For now, all eyes are on Madrid, where negotiators face the daunting task of untangling the complex web of tariffs, export controls, and regulatory investigations that threaten to upend the world’s most critical supply chains.
