China investigates Google, Nvidia and Intel in response to Trump

Beijing reopens antitrust investigations against Google and Nvidia and evaluates action against Intel, expanding the commercial dispute with the US after tariffs imposed by Trump

China has resumed antitrust investigations against Google and Nvidia while considering opening a new investigation against Intel as Beijing seeks pressure instruments in negotiations with US President Donald Trump.

According to the Financial Times, the state administration of Market Regulation of China (SAMR) announced on Tuesday (4) that had opened an investigation into competition against Google. Two people familiar with the subject said the focus will be the dominance of the US group’s Android operating system and any damage caused to Chinese smartphone manufacturers, such as OPPO and Xiaomi, who use the software.

Chinese regulators, who announced a similar antitrust investigation against Nvidia in December, are also considering launching a formal investigation against Intel, two people said. However, the nature of the US chip manufacturer is not yet clear, one of the sources said, adding that its official implementation can be influenced by the state of US and China relations. President Xi Jinping should talk to Trump in the coming days.

Technological investigations “can be part of the retaliatory measures” taken by China in response to the new tariffs imposed by Trump to the country, Liu Xu, researcher at the National Institute of Strategy at Tsinghua University.

Xu added that using antitrust investigations as a tool in commercial negotiations may not be the best way to protect Chinese companies affected by US tariffs. “This would inevitably generate controversy,” he said.

Beijing’s effort to build cases against large US technology companies occurs amid an increase in tensions between the two global powers, with these companies increasingly trapped in cross fire.

The investigation against Google, which regulators started for the first time in 2019, had been filed for years, but was reopened in December, according to two people familiar with the case. This movement occurred shortly before Trump took over the US presidency after an election campaign promising to impose high tariffs against Chinese products.

With a new urgency to launch the investigation, Samr regulators visited Google’s Beijing Office in January, before Trump’s inauguration, and demanded the delivery of related information, the sources said.

Biden administration, in its final months, also intensified advanced chips export controls, seeking to contain China’s AI capabilities growth.

During this period, SAMR announced in December that it was investigating allegations that Nvidia violated commitments made during the acquisition of Mellanox Technologies in 2019, an Israeli company that manufactures computer network equipment.

SAMR approved the acquisition in 2020 with conditions to avoid anticompetitive practices and ensure supply to China, and soon after began to discreetly collect complaints from the sector, according to a person familiar with the subject.

The investigation surprised Nvidia, the world’s largest manufacturer of advanced AI semiconductors.

Days before the SAMR announcement, Nvidia executives met with the China Ministry of Commerce to discuss the operations of the chip manufacturer, valued at $ 2.9 billion, in their second largest market outside the US, according to two people with knowledge of the meeting.

One of these people said employees of MOFCOM (Ministry of Commerce) advised that “Nvidia is welcome to continue expanding their business in China.” The country represents 13% of its global sales in the first three quarters of 2024, according to company records.

Antitrust investigations against large US technology companies may result in fines linked to global companies of companies or loss of access to one of their largest international markets.

China is Intel’s largest market, even surpassing its domestic market. The US chip manufacturer recorded $ 15.5 billion in sales in the country by 2024, representing 29% of its global revenue, according to company records.

Although Google’s search engine is blocked in China, as is most businesses of its controller, Alphabet, the US company, profits from Chinese companies abroad. Chinese smartphone manufacturers also use the Android operating system.

Alphabet does not disclose its specific revenue from China, but the Asia Pacific region contributed 17% of sales in 2023.

Google and Nvidia refused to comment. Intel did not immediately respond to requests for comment. Mofcom and Samr, based in Beijing, did not answer questions sent by fax outside working hours.