Alphabet Cleared But China Zeroes In on Nvidia Instead

China has decided to call off its antitrust investigation into Alphabet Inc.'s (GOOGL, Financials) Google, while at the same time opening a new front against Nvidia Corp. (NVDA, Financials), according to the Financial Times.

The move is being read as a calculated shift. By dropping the Google case, Beijing signals some flexibility in its dealings with Washington. But by targeting Nvidia instead, it keeps pressure on one of the most important U.S. tech firms as trade talks grind on.

China's market regulator had launched its probe into Google back in February, accusing the company of potential monopoly violations. That case is now over, though sources said Google has not yet been formally notified. The company declined to comment.

Nvidia, meanwhile, faces fresh allegations of violating China's antitrust laws after a preliminary review of its business practices. The timing comes as the U.S. and China continue to spar over tariffs, technology access and the fate of TikTok. President Donald Trump cut tariffs from initial steep levels to 30%, while Beijing responded with its own 10% tariffs and scrutiny of American tech giants.

For investors, the takeaway is that U.S. companies remain caught in the crossfire. Google gets a reprieve, but Nvidia could find itself at the center of the next stage in the trade dispute.