China has launched an investigation into US computer chip maker Nvidia for alleged violations of antitrust laws, in the latest move in the two countries’ fight over the lucrative semiconductor market.
The announcement follows Washington’s recent decision to further restrict sales to companies in China’s semiconductor industry.
US President Joe Biden has tightened restrictions on the sale of advanced technology to China, with the clash over exports expected to continue as Donald Trump re-enters the White House.
Share prices in Nvidia fell after the news. The company did not immediately respond to the BBC’s request for comment.
Founded in 1993, Nvidia was originally known for making a variety of computer chips that process graphics, particularly for computer games.
The tech giant is now at the forefront of developing artificial intelligence (AI)-powered chips.
But on Monday, Chinese state broadcaster CCTV said authorities in Beijing had launched an investigation “in accordance with law”.
Nvidia has also been accused of breaking promises it made in 2020 when it acquired Mellanox Technologies.
It comes after a fresh US crackdown last week, which banned 140 companies from selling to Chinese chip firms such as Piotech and SiCarrier without special permission.
Countries are locked in a race to dominate the market in high-end chips.
It has become a source of geopolitical tension, although US technology giant Nvidia has seen its shares rise over the past year.
While Monday’s announcement saw Nvidia shares fall nearly 2% in premarket trading, it remains one of the world’s most valuable companies.
However, it faces increasing competition from rivals such as AMD and Intel.