As reported by TechCrunch.
Tense trade relations between China and the United States over semiconductors intensified after the decision of the State Administration for Market Regulation of China (SAMR), which declared Nvidia in violation of the country’s antitrust rules. The decision concerns the $7 billion acquisition of Mellanox Technologies in 2020, which made Nvidia a key player in the market for computer networking solutions.
“We abide by the law in all respects. We will continue to work with all relevant government agencies as they assess the impact of export restrictions on competition in the markets.”
China has not yet announced any concrete steps in response to SAMR’s conclusions and continues the investigation. However, the decision is likely to put additional pressure on tariff negotiations between the United States and China, which are currently the focus of the negotiation process. Although trade topics are not focused solely on semiconductors, access to Nvidia chips remains one of the key points of disagreement between the two regimes.
Background: in January, the Biden administration introduced the so-called AI Diffusion rules aimed at restricting exports of chips for artificial intelligence from the United States to several countries, with tightened requirements for China. While in May certain provisions were revised, the future supply of AI chips to China remained uncertain. In previous months licensing agreements were introduced, which were later partially rolled back, but China continues to implement measures, including a requirement for a portion of revenue from such sales for certain companies. It is also known that China is encouraging companies not to purchase Nvidia chips, and according to the company’s latest financial reports, none of its chips has passed the new export process.
Analysts believe that SAMR’s decision could spur further regulatory steps and increase pressure on future restrictions on the export of high-tech chips between the United States and China.
Context of Regulatory Pressure and Future Prospects
In light of the new actions by Chinese regulators, attention from investors and chip manufacturers is focused on how quickly the rules of the game can change in the global supply chain. At the same time, American and international companies continue to adapt their strategies in line with rising export-control requirements and fair competition across various markets. Given the dynamics of regulatory initiatives, export-oriented players should expect additional announcements and possible restrictions that will affect both supply chains and governments’ negotiating positions.
In light of this situation, experts advise monitoring new developments in regulatory policy and companies’ readiness to adapt, particularly regarding chip export controls and technology transfer strategies, to reduce risks of supply disruptions and losses in international markets.
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- Changes in US tariff policy end de minimis exemption, causing delivery suspensions from Japan, Australia, Taiwan, Mexico, and others, disrupting global supply chains and online retail.
