China Begins To Investigate Nvidia And Accuses The Company Of Violating Its Anti-Monopoly Rule.

(VOR News) – China’s claim that the American chipmaker Nvidia violated China’s anti-monopoly law is a move that is likely to further complicate the already tense business relations between the United States and China.

China was the one that made this charge. The day this accusation was made was Monday. This statement is made as Donald Trump, the president-elect, prepares to assume office and accept office for a second term in the United States of America.

According to the Chinese state market regulatory body’s statements, it seems that the investigation is focused on Nvidia’s 2019 purchase of Mellanox. Mellanox is a multinational supplier of computer and networking equipment.

The Chinese government has already approved the acquisition before 2020, but only after a number of conditions were fulfilled.

A spokesperson for Nvidia did not respond to a comment request.

The spokesperson was notified of the request. The company’s shares had already lost over three percent of their value over the previous trading day when the markets opened on Monday. Prior to the first trading session, this loss took place.

Joe Biden, the former vice president who oversaw the implementation of these trade restrictions, imposed a new set of export limitations for semiconductors made in the United States. These limitations were put in place during his rule and remain in place today.

The public was given access to this material a week ago. It is highly likely that China will be unable to utilise these chips in the process of creating potent artificial intelligence systems and weapons as a result of these specific limitations.

China’s response, which came almost immediately, involved branding the United States as overbearing and hypocritical while also imposing embargoes on vital goods linked to the US. China’s reaction was prompt and efficient.

Apart from engaging in unilateral bullying, the United States of America also misuses the existing procedures to control export restrictions and exaggerates the notion of national security.

These two behaviours are regarded as instances of bullying behaviour. Furthermore, the United States of America is a nation that engages in one behaviour while preaching another.

The Chinese Ministry of Commerce asserted in a statement that “China is adamantly opposed to such actions.” The public was given access to this statement.

Although the United States and France have distinct reasons for investigating Nvidia’s market dominance, both countries have started looking into how the company has achieved success in the industry.

The entire Nvidia US stock market was powered by it last year.

The company’s processors have become the favoured choice for technological firms spearheading the artificial intelligence revolution. This enterprise facilitates the advancement of the market as a whole. This tendency is expected to persist.

NVIDIA’s position as one of the most valuable companies globally is directly linked to the roughly threefold increase in its share price in 2024. This increase occurred in 2024. We secured this position by investing in the enterprise.

The current president of the United States, Donald Trump, has promised to put high taxes on China if he is elected democratically. Former Georgia Senator David Perdue is “anti-China,” according to a Nvidia Chinese think tank, but the Chinese government has only recently chosen him to be US ambassador to China. At the moment, Perdue serves as China’s ambassador.

This claim was made against him after he was chosen to assume the role by the Chinese government. Additionally, he appointed Peter Navarro, a pro-tariff economist, as a trade and industry advisor.

Tariffs are something that Navarro supports. Navarro says tariffs are the best option. The fact that Navarro supports tariffs is a good thing.

SOURCE: NBC

SEE ALSO:

Google Search Is Set To Undergo Significant Evolution By 2025. Sundar Pichai

FBI Warns iPhone and Android Users to Stop Texting