China’s market regulator announced on Monday that it will prolong its antitrust investigation into U.S. semiconductor company Nvidia (NASDAQ:NVDA) after initial findings suggested the company may have violated the country’s competition laws.
The inquiry centers on Nvidia’s 2020 acquisition of Israeli chip designer Mellanox Technologies, which Beijing had approved under specific conditions. Chinese authorities allege that Nvidia did not fully comply with those requirements.
Following the news, Nvidia shares fell more than 2% in premarket trading on Monday.
The regulatory development comes as U.S. and Chinese officials convene in Madrid to continue talks aimed at resolving trade tensions. The first round of discussions took place on Sunday, led by U.S. Trade Representative Jamieson Greer and Treasury envoy Bessent, alongside Chinese Vice Premier He Lifeng and senior negotiator Li Chenggang. The session lasted around six hours at Spain’s foreign ministry and is scheduled to resume today.
This marks the fourth round of such meetings over recent months, following earlier sessions in European capitals designed to ease disputes over tariffs and access to critical raw materials. In July, negotiators in Stockholm agreed to extend a 90-day truce that had scaled back retaliatory duties and reopened the supply of rare-earth elements from China to the U.S.
U.S. President Donald Trump has authorized the continuation of current tariffs on Chinese imports, averaging 55%, through November 10. The extension keeps trade pressure high even as discussions continue on issues including TikTok’s operations in the U.S. and Beijing’s oil purchases from Russia.
Last month, reports indicated that Nvidia instructed several suppliers to halt production of its H20 chips intended for the Chinese market, following Beijing’s directive to local firms to stop purchasing the processors due to security concerns. Suppliers reportedly affected include Amkor Technology in Arizona, responsible for advanced packaging, Samsung Electronics, which provides memory for the H20, and Foxconn (Hon Hai), which was asked to suspend related work.
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