China Moves to End Google Antitrust Probe while Targeting Nvidia: A Signal to Washington?

TradingKey - As trade negotiations between China and the United States remain unresolved, Beijing’s strategy of using the “blockade of Nvidia” as leverage to strengthen its bargaining position is becoming increasingly evident. Sources say China is planning to terminate its antitrust investigation into Google, shifting regulatory focus squarely onto chip giant Nvidia.

According to a Financial Times report on September 18, two people familiar with the matter said China’s State Administration for Market Regulation (SAMR) has decided to end its antitrust probe into Google. 

This move comes amid ongoing tensions between the two nations, with recent talks held in Spain over trade, Nvidia, and TikTok.

In early February, SAMR announced an investigation into Google for suspected violations of China’s anti-monopoly laws — widely seen as a response to U.S. trade policies. At the time, China also introduced retaliatory tariffs and export controls on critical rare earth materials.

Since exiting mainland China’s search market in 2010, Google’s operations in China have been limited. Core products like its search engine, YouTube, and Google Play remain inaccessible, leaving primarily the business of licensing its Android mobile operating system to Chinese smartphone makers such as OPPO and VIVO.

Sources said ending the Google probe signals a strategic recalibration, with China now concentrating regulatory pressure on Nvidia, the world’s most valuable semiconductor company, to use it as a bargaining chip in trade talks. 

The approach follows a “target one, release the other” tactic, narrowing the scope of regulatory attacks.

Optimistically, one source said this could also send a positive signal to Washington, showing that China remains flexible in negotiations.

As of now, the news has not been officially confirmed by Chinese authorities, and Google has not received formal notification.

If true, this would mark another regulatory win for Google. Earlier this month, a U.S. federal judge ruled in a long-running antitrust case that Google does not need to sell Chrome, avoiding a major structural breakup.

The very next day, reports emerged that China’s Cyberspace Administration of China (CAC) had instructed tech firms including ByteDance and Alibaba to halt testing and procurement of Nvidia’s RTX Pro 6000D — a custom product designed to fill the gap left by the banned H20 chip.

Amid growing uncertainty over chip export prospects to China, Nvidia’s stock has fallen more than 6% from its mid-August peak. In contrast, Google’s shares have remained resilient, rising 17% this month.