The U.S.-China chip war is heating up! China initiates an antitrust investigation against NVIDIA, how much impact will it have on NVIDIA's performance?

On the 9th, China's State Administration for Market Regulation announced that it has initiated an investigation into NVIDIA, a leading AI chipmaker, for allegedly violating antitrust laws. NVIDIA's stock price fell 2.55% on the 9th upon hearing the news. This action by China may express dissatisfaction with the United States' restrictions on semiconductor exports to China, indicating that it will not remain silent in the face of a series of trade sanctions. However, whether the Trump administration is willing to negotiate remains uncertain. (Background: NVIDIA's Q3 revenue grew nearly 100%, but why did it 'plunge 5%' after hours? What are investors dissatisfied with? Key points from NVIDIA's earnings report summarized.) (Additional background: NVIDIA's earnings report is coming! Its impact may be greater than Fed interest rates or inflation data; Wall Street's forward-looking analysis is compiled.) The tech war between China and the U.S. has intensified, as the U.S. Department of Commerce announced last week its third crackdown on China's semiconductor industry in three years, restricting China's access to critical chip components and AI technology. 140 Chinese companies were placed on a blacklist, which includes 24 types of chip manufacturing equipment and three types of software, as well as high-bandwidth memory (HBM) under control. On the same day, China's Ministry of Commerce responded that it would take necessary measures to firmly safeguard its legitimate rights and interests. A week later, on the 9th, China's State Administration for Market Regulation announced that NVIDIA is under investigation for allegedly violating antitrust laws, as well as for the antitrust review decision regarding the approval of NVIDIA's acquisition of Mellanox Technologies with additional restrictive conditions. As a result of this news, NVIDIA's stock price fell 2.55% to $138.81 on the 9th. Is China challenging Trump? The Wall Street Journal reported that in the past four quarters, NVIDIA's total revenue in the Chinese market was $13.5 billion, accounting for 12% of its global business. Due to U.S. restrictions on NVIDIA selling its highest-end chips to China, NVIDIA's business proportion in China has shrunk. Reports indicate that China's antitrust investigation against NVIDIA is a response to express dissatisfaction with U.S. export restrictions against China. China intends to convey to the U.S. that it will not remain silent in the face of trade and technology sanctions, especially in response to Trump, who is about to take office next month and may carry out a series of actions against China. In 2019, NVIDIA announced its acquisition of Israeli chip manufacturer Mellanox Technologies for $7 billion. At that time, Chinese regulators agreed to the acquisition because NVIDIA agreed to supply GPUs to China and not discriminate against Chinese consumers, thus the review was successfully passed. However, the State Administration for Market Regulation now suspects that NVIDIA's acquisition of Mellanox Technologies' equity may violate China's antitrust laws. Nevertheless, Chinese authorities have not provided specific explanations for any wrongdoings or breaches of commitments by NVIDIA, while NVIDIA has stated that the acquisition agreement can be revoked after six years. Ian Bremmer, founder of Eurasia Group, believes that this move by China is a challenge to the new U.S. government and may pave the way for a significant agreement between the two sides, but this will only be effective if the Trump team is willing to negotiate, which is currently unclear. Bob O'Donnell, chief analyst at TECHnalysis Research, stated that this investigation is unlikely to have a major impact on NVIDIA, especially in the short term, as most of NVIDIA's advanced chips have already been restricted from being sold to China. Related reports: NVIDIA collaborates with SoftBank to launch three major projects: the first AI + 5G telecommunications network, building Japan's strongest supercomputer, and creating an AI marketplace. The Minister of Economic Affairs: Clouded Leopard Energy relies on 'NVIDIA's investment in Taiwan' fake news to manipulate stocks, saying many things that should not be said.. NVIDIA launches AI detection of cash flow technology: Can it accelerate tracking illegal activities on the chain and investigate the Ko Wen-je case? "The U.S.-China chip war is heating up! China initiates an antitrust investigation against NVIDIA, how much impact will it have on NVIDIA's performance?" This article was first published in BlockTempo (the most influential blockchain news media).