China says Nvidia violated antitrust regulations

Core Viewpoint - Trade tensions between China and the U.S. regarding semiconductors have intensified, particularly following China's antitrust ruling against Nvidia related to its acquisition of Mellanox Technologies for $7 billion [1][2]. Group 1: Regulatory Actions - China's State Administration for Market Regulation found Nvidia in violation of antitrust regulations concerning its 2020 acquisition of Mellanox Technologies [1]. - Nvidia stated its commitment to comply with laws and cooperate with government agencies regarding the impact of export controls on competition [2]. Group 2: Trade Negotiations - The ruling against Nvidia is expected to negatively impact ongoing tariff negotiations between the U.S. and China, which are currently taking place in Madrid [2]. - Access to Nvidia chips remains a significant point of contention in U.S.-China relations, despite the trade discussions not being specifically focused on semiconductors [2]. Group 3: Export Controls and Licensing - The Biden administration's AI Diffusion Rule aimed to restrict U.S.-made AI chips to various countries, with specific limitations for China and other adversaries [3]. - Although the U.S. Department of Commerce repealed the AI rule in May, the future of AI chip exports to China remains uncertain due to previous licensing agreements imposed by the Trump administration [4]. - A recent deal requires companies selling chips to China to remit 15% of their revenue to the U.S., while China has discouraged purchases of Nvidia chips, resulting in none of Nvidia's chips passing through the new export process [5].