The escalating US-China tech war has drawn Nvidia into the geopolitical battlefield. Once a dominant force in China’s AI chip market, the US chip giant now faces an antitrust investigation by China’s State Administration for Market Regulation (SAMR). This move follows the US crackdown on TikTok, signaling heightened tensions between the two economic superpowers. It’s time to FaceOff the US-China Tech Relations.
On December 9, 2023, China launched an antitrust probe into Nvidia, citing concerns over its 2019 acquisition of Israeli chipmaker Mellanox for $6.9 billion. At the time, China conditionally approved the deal, requiring Nvidia to ensure fair competition and non-discriminatory practices. However, with US-imposed chip restrictions limiting Nvidia’s exports to China, the company now faces potential fines of up to $5 billion under China’s Anti-Monopoly Law.
Nvidia’s China revenue share has dropped from 26% in 2022 to 17% in 2024, eroded by US sanctions and rising Chinese chip competitors. Simultaneously, France and the US Justice Department have launched their own antitrust investigations into the company’s AI chip dominance.
Beijing’s move is widely seen as retaliation after Washingto
Meanwhile, TikTok, owned by ByteDance, is facing a US-imposed forced divestiture. A US federal court rejected TikTok’s appeal, requiring ByteDance to sell its US business by January 2025 or face a ban. With its fate uncertain, TikTok’s legal battle may set a precedent for future US restrictions on Chinese tech companies.
As Nvidia and TikTok navigate regulatory battles, the US-China tech war shows no signs of easing. With China leveraging economic pressure and the US pushing stricter trade policies, multinational companies remain vulnerable, caught between two warring superpowers with no clear resolution in sight.
