Amid the diplomatic developments between the US and China, Google gets major relief from the latter’s antitrust investigation case. The new trade negotiations between Donald Trump and Xi Jinping seems to have led to the Chinese side to withdraw the antitrust investigation against the US tech firm and instead, focus on another tech firm that could help them in the rapidly expanding AI business.
The probe, which was initiated by China’s State Administration for Market Regulation (SAMR) in February, focused on Google’s alleged anti-competitive practices related to its Android operating system. The investigation has been widely seen as a retaliatory measure following a period of escalating trade tensions and tariffs imposed by the United States. With trade negotiations, it seems that China is ready to let go of Google’s case.
China relieves Google of antitrust investigation, but focuses on Nvidia
According to reports, the move to end the Google probe is a strategic shift by Beijing. Rather than pursuing the case against Google, Chinese regulators are now reportedly turning their focus to Nvidia, which is currently the leading manufacturer of AI chips. This shift is seen as a way for China to leverage a different technology in its ongoing trade talks with the US, while also signaling a willingness to de-escalate tensions.
“Google barely has any meaningful business in China — this is purely a symbolic gesture of goodwill. Every favour is counted, even those that don’t cost anything,” said Vey-Sern Ling, a managing director at Union Bancaire Privee.
China has not announced the decision formally to Google, but it is being viewed by analysts as a gesture of goodwill ahead of a potential meeting between Donald Trump and his Chinese counterpart Xi Jinping.
China sets its eyes on Nvidia
While the Google investigation appears to be over for now, the new focus on Nvidia highlights the importance of semiconductors and AI in the global technology race. China’s cyberspace regulator has already instructed local firms like Alibaba to halt orders for Nvidia’s RTX Pro 6000D – an AI-centric GPU.
