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China Says Nvidia Violated Antitrust Rules Amid Trade Talks

By  |  September 15, 2025
China Says Nvidia Violated Antitrust Rules Amid Trade Talks

China has determined that Nvidia Corp. breached anti-monopoly laws in connection with its $7 billion purchase of Mellanox Technologies in 2020, adding tension to already sensitive trade negotiations with Washington. According to Bloomberg, the State Administration for Market Regulation reached the finding after a preliminary review of the deal. Shares of Nvidia slid about 1 percent in U.S. trading following the announcement.

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    The decision was disclosed as officials from the United States and China entered a second day of discussions in Madrid centered on tariffs and trade. Per Bloomberg, Beijing also revealed a fresh anti-dumping investigation over the weekend targeting certain U.S.-made semiconductors, including those from Texas Instruments Inc., whose stock dropped as much as 4.7 percent. The regulator did not immediately clarify what corrective measures it may require from Nvidia and said further scrutiny is planned. Nvidia has not yet publicly responded.

    The timing of the ruling comes just as President Donald Trump prepares to speak with Chinese President Xi Jinping later this week. Treasury Secretary Scott Bessent acknowledged that the probe was poorly timed but added that the two governments had established a framework to keep TikTok operating in the U.S., Bloomberg reported.

    Read more: Nvidia Warns U.S. AI Chip Bill Could Hamper Global Competition

    Nvidia’s prominence in artificial intelligence has made it a focal point in the broader economic and security standoff between Washington and Beijing. The company dominates the market for advanced chips used to build and power AI systems at global firms such as Meta Platforms and DeepSeek. In December, Chinese regulators opened a probe into Nvidia’s Mellanox deal, even though Beijing had granted conditional approval four years earlier.

    The U.S. has already barred Nvidia from exporting its most powerful AI chips to Chinese buyers over security concerns. The company has since reengineered its products multiple times to comply with restrictions. According to Bloomberg, Monday’s announcement follows the Trump administration’s recent move to permit Nvidia and Advanced Micro Devices to sell some AI processors in China, though Beijing has advised its agencies to avoid Nvidia’s H20 chips.

    Negotiators in Madrid are tackling a wide range of disputes, from TikTok to tariffs, in talks that stretched nearly six hours on the first day. ByteDance’s popular video app faces a looming deadline this week to secure an arrangement that allows it to continue operating in the U.S.

    Source: Bloomberg