China’s market regulatory body accused Nvidia of violating anti-monopoly laws Monday after the conclusion of a preliminary investigation. The specifics of the alleged breach remain murky, but the timing suggests it is indirectly related to the ongoing trade talks between the two countries in Spain. With much of those talks relating to China’s access to high-end American processors for AI training and inference, Reuters reports, some believe China may be leveraging its legal system as a negotiating tool to encourage more favorable terms. China launched the investigation into Nvidia’s business practices related to Chinese anti-monopoly laws in December 2024, with authorities claiming it suspected Nvidia of violating the commitments it made when purchasing the Israeli chip designer Mellanox Technologies in 2020.

Full report : In a preliminary probe, China rules that Nvidia violated anti-monopoly laws by acquiring Mellanox in April 2020, as the US and China negotiate tariffs in Madrid.