Nvidia facing antitrust investigation from China

Driving the news: China's State Administration for Market Regulation — which investigates monopolies — is probing Nvidia's acquisition of Mellanox Technologies, according to multiple reports.

• "Together, the moves by Beijing signal its willingness to engage in supply chain warfare as the policy war over trade and the control of technology escalates between the world's two largest economies," The New York Times reported.

The big picture: The U.S. last week took steps to prevent the sale of dozens of kinds of semiconductor manufacturing equipment to Chinese companies.

• There is a long history of Chinese authorities using antitrust measures as a tool in response to U.S. regulatory actions.
• The back-and-forth in the waning days of the Biden administration sets up further conflict next year, if President-elect Trump makes good on his tariff threats.

Yes, but: The U.S. is also reportedly investigating Nvidia over potential antitrust violations.

The impact: The stock was down 2.9% in midday trading Monday.

What they're saying: "NVIDIA wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them," the company said Monday in a statement.

• "We work hard to provide the best products we can in every region and honor our commitments everywhere we do business.  We are happy to answer any questions regulators may have about our business."

Editor's Note: This story has been updated with Nvidia's statement.