nvidia feels the heat: china launches antitrust probe amid us tensions

2025-09-15 nvidia

Beijing, Monday, 15 September 2025.
Nvidia is facing an antitrust investigation in China. This action occurs as the U.S. increases sanctions on Chinese firms. The State Administration for Market Regulation suspects Nvidia of violating the Anti-Monopoly Law. The investigation follows concerns about security risks associated with NVIDIA’s H20 chip. Chinese authorities previously summoned Tencent and ByteDance regarding their purchases of the H20 chip. Nvidia’s stock experienced a decline of 2.1% in pre-market trading. This confluence of events casts a shadow over Nvidia’s future in a crucial market.

antitrust concerns and market impact

The State Administration for Market Regulation (SAMR) in China is conducting a further investigation into NVIDIA for potential violations of the Anti-Monopoly Law [2][3][6]. This probe stems from concerns that NVIDIA may have breached the terms of its acquisition of Mellanox Technologies in 2020 [3][5]. The U.S. Treasury Secretary Scott Bessent said the timing of China’s Nvidia investigation was discussed in Madrid trade talks [3]. News of the investigation impacted Nvidia’s stock, with shares falling 2.1% in pre-market trading [3][5].

china’s strategic considerations

The investigation into NVIDIA occurs amidst ongoing trade negotiations between the U.S. and China, potentially increasing pressure on Washington [5][6]. The U.S. recently added 23 Chinese companies to its trade blacklist [1][3]. Zhengyuan Bo, a partner at Plenum, suggests that China’s actions serve as a warning [3]. According to Bo, these actions indicate that the U.S. export control paradigm may face consequences [3]. Alfredo Montufar-Helu, managing director at GreenPoint, views both sides as building leverage for negotiation [3].

revenue exposure and competitive dynamics

China is a significant market for NVIDIA. In the fiscal year ending January 26, 2025, China generated $17 billion in revenue for NVIDIA, representing 13% of its total sales [3]. Despite the current challenges, Plenum’s Bo suggests that the investigation should not be interpreted as China attempting to completely exclude NVIDIA from the country [3]. The ongoing investigation introduces uncertainty regarding NVIDIA’s competitive positioning and access to the Chinese market [1].

Bronnen

nvidia antitrust