China pressures Nvidia and TI as tech takes center stage in US trade talks

China has ruled that Nvidia violated anti-monopoly laws in its 2020 acquisition of Mellanox Technologies, a decision that escalates tensions amid critical U.S.-China trade negotiations. The surprise announcement from China’s State Administration for Market Regulation sent Nvidia’s shares down approximately 2% in pre-market trading.

The move comes as officials from both countries meet in Madrid for wide-ranging talks on tariffs and economic policy. In a parallel action, China also launched an anti-dumping probe into semiconductors from U.S. companies, including Texas Instruments, whose shares also fell.

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Nvidia, a dominant force in the AI chip market, has been caught in the crossfire of the tech rivalry between Washington and Beijing. The U.S. has previously restricted Nvidia from selling its most advanced AI chips to China over national security concerns, forcing the company to create modified versions for the Chinese market.

The impact of China’s antitrust ruling on the ongoing talks is unclear. The negotiations are also expected to address the fate of TikTok, which faces a U.S. divestiture deadline, and to lay the groundwork for a potential meeting between the two countries’ leaders later this year.