China is present The heat on American technology giants, reviving its antitrust probe on Google (Nasdaq: Goog) while doubled the surveys on Nvidia (Nasdaq: NVDA) and consider a new case against Intel (Nasdaq: Intc). The control, led by the Chinese state administration for market regulations, focuses on Google’s Android domination and its impact on Chinese smartphones manufacturers. Nvidia, already under survey for its acquisition of Mellanox 2019, now faces renewed regulatory pressure, while the intelligence depends on China for almost a third of its income takes place in the reticle, although the details of His potential probe remains unclear.
Timing could not be more strategic. While the US trade tensions of Chinos have collapsed, with Washington imposing new prices for Chinese imports and Beijing withdraws with levies on key American exports, these investigations could be more than just a regulatory application. The planned conversation of President Donald Trump with Chinese President Xi Jinping in the coming days adds another layer of intrigue, raising the possibility that these actions are designed to obtain a lever effect in the negotiations.
For investors, the challenges are high. All penalties, massive fines or limited access to the market could shake up the prospects for the profits of these companies. Nvidia, which already deals with American export controls on AI fleas, faces increased risks in its second market. Intel’s exhibition is even larger, China representing almost 29% of its world income. If tensions increase, American technological actions could see increased volatility, which makes investors crucial to monitor how these geopolitical maneuvers are taking place in the coming weeks.
This article appeared for the first time on Gurufocus.