China has opened an investigation against U.S. computer chipmaker Nvidia for alleged violations of its anti-monopoly laws, the latest step in the two countries' battle over the lucrative semiconductor market.
This announcement follows Washington's recent decision to further restrict sales to companies in the Chinese semiconductor sector.
US President Joe Biden has tightened restrictions on the sale of cutting-edge technology to China, with the dispute over exports expected to continue when Donald Trump returns to the White House.
Nvidia stock prices fell following the news. The company did not immediately respond to the BBC's request for comment.
Founded in 1993, Nvidia was originally known for making the type of computer chips that process graphics, particularly for computer games.
The tech giant is now at the forefront of developing chips powering artificial intelligence (AI).
But on Monday, Chinese state broadcaster CCTV said authorities in Beijing had launched an investigation “in accordance with the law.”
Nvidia was also accused of violating commitments made in 2020 when it acquired Mellanox Technologies.
This follows a new crackdown by the United States last week, which imposed restrictions on sales on 140 companies, including Chinese chip companies such as Piotech and SiCarrier, without special authorization.
Countries are engaged in a race to establish dominance in the high-end chip market.
It has become a source of geopolitical tension, even as U.S. tech giant Nvidia has seen its shares rise over the past year.
Although Monday's announcement saw Nvidia shares fall about 2% in premarket trading, the company remains one of the most valuable companies in the world.
However, it faces increasing competition from rivals such as AMD and Intel.
