U.S. chip manufacturing leader, Nvidia, declared on Tuesday its full compliance with all laws following a Chinese probe that indicated potential antitrust violations. This announcement marks a significant moment in the escalating technological competition between Beijing and Washington.
An Nvidia spokesperson, in a written statement to AFP, firmly stated, “We comply with the law in all respects.” The company further committed to “continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets.”
Based in California, this artificial intelligence (AI) chip powerhouse finds itself at the heart of a heated global contest between China and the United States, each vying for dominance in the indispensable semiconductor industry.
The U.S. government has already imposed restrictions, preventing Nvidia from exporting its most cutting-edge products to China. Furthermore, last month, it was confirmed that Nvidia would be required to remit 15 percent of its revenue from specific AI chip sales within China to the U.S. government.
In response, Beijing has voiced national security concerns regarding Nvidia’s chips, actively encouraging Chinese businesses to prioritize domestic semiconductor suppliers.
Following an investigation launched in December, China’s leading market regulator announced on Monday that preliminary findings indicate Nvidia had contravened anti-monopoly laws.
The regulator’s statement, however, did not elaborate on the specific details of Nvidia’s alleged violations, but affirmed its intention to conduct a more extensive investigation.
This announcement from China closely followed a two-day series of highly anticipated trade discussions between officials from Beijing and Washington held in Madrid.
These discussions culminated in both nations agreeing to a “framework” deal aimed at settling a significant dispute concerning TikTok, which would involve the Chinese-owned application transitioning to U.S.-controlled ownership.
In a preceding week, senior diplomats and defense leaders from both countries engaged in consecutive phone calls. Analysts suggest these exchanges might be a precursor to a potential meeting between leaders Donald Trump and Xi Jinping.