China says preliminary probe shows Nvidia violated anti-monopoly law

China’s market regulator on Monday said that a preliminary investigation had found that Nvidia had violated the country’s anti-monopoly law, marking the latest hit for the US chip giant.

The announcement from the State Administration for Market Regulation comes as the US and China hold trade talks in Madrid, where chips, including the ones made by Nvidia, are expected to be on the agenda.

The announcement from the SAMR was likely timed to give China clout while trade talks are ongoing, analysts told Reuters.

“Both sides appear to be building leverage…