Google has received a major relief as Chinese regulators decided to drop their antitrust investigation into the company, choosing instead to focus on Nvidia amid intensifying global competition in artificial intelligence.
The probe was initiated in February by China’s State Administration for Market Regulation and centred on Google’s Android operating system, alleging anti-competitive practices. At the time, it was widely seen as a response to trade tensions and tariffs between the United States and China. However, with fresh negotiations underway between Donald Trump and Xi Jinping, Beijing appears to have stepped back from the case.
Reports suggest that ending the Google investigation is a calculated move by China. Analysts believe it reflects a willingness to ease tensions with the US, while redirecting regulatory scrutiny to Nvidia, the world’s leading supplier of AI chips. “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 a financial firm.
Although the decision has not been formally communicated to Google, it is being interpreted as a positive sign ahead of a possible meeting between the two leaders. The timing indicates that Beijing may be signalling cooperation in certain areas, while strengthening its stance in the AI technology race.
China’s renewed focus on Nvidia underlines the growing importance of semiconductors in shaping the future of AI. The country’s cyberspace regulator has already instructed domestic companies, including major technology players, to stop purchasing Nvidia’s RTX Pro 6000D, a GPU designed specifically for artificial intelligence applications.
This strategic shift highlights how AI has become central to both trade and technology discussions between the two economic powers. While Google may have escaped immediate regulatory pressure, Nvidia is now at the centre of China’s efforts to assert greater control over critical AI hardware.
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