Introduction
In 2025, the rivalry between the US and China is not limited to trade and diplomacy but has turned into an escalating geopolitical struggle in the field of technology. The agreement in principle reached in Madrid on TikTok’s US operations and the monopolization accusations levelled against Nvidia by China’s State Administration for Market Regulation (SAMR) in the same period have revealed two different fronts of this struggle.
The debates over social media and data security on the one hand, and the competition over chip technologies and strategic infrastructures on the other, reveal what kind of role the two countries want to play in the global technology order.
Madrid Talks and the Framework of the TikTok Agreement
Scope of the Agreement
Following high-level negotiations in Madrid, the US and China announced that they had agreed on a framework agreement on TikTok’s activities in the US. Although the exact terms of the agreement have not been made public, the following points stand out in line with the information reflected in the press:
- Data Security: Implementation of new regulations regarding the control and storage of TikTok’s US user data,
- Algorithm Management: Restructuring the content recommendation system and algorithms to meet US security concerns,
- Company Structure: ByteDance maintains control over its US operations within certain limits, but subject to transparency and oversight mechanisms,
- Political Approval: The final arrangement is subject to approval by the leaders of the two countries and subsequent technical negotiations.
Background to the Agreement
The US has long considered TikTok a threat to national security. Regulations passed in Congress would have required ByteDance to completely hand over TikTok’s US operations or the app would have been banned. The Washington administration considered the possibility that user data could be accessed by the Chinese state a serious security risk.
The Chinese side, on the other hand, argued that the forced takeover of TikTok would violate international trade rules and accelerate the divergence in the technology field. The Madrid talks therefore provided a critical ground for compromise and demonstrated that the parties had found common ground, at least at the level of principles.
Monopolization Accusations Against Nvidia
Content of the Accusations
Almost simultaneously with the Madrid talks, China’s SAMR agency announced that US-based chipmaker Nvidia violated the country’s anti-monopolization laws. These allegations are based on commitments made during Nvidia’s acquisition of Mellanox Technologies in 2020.
SAMR alleges that Nvidia failed to fulfill certain obligations regarding the Chinese market in the course of the acquisition, and also strengthened its market dominance by violating competition conditions. The statement emphasized that the company’s behavior harmed China’s fair competition environment and that an official investigation process was initiated.
Timing and Strategic Significance
The fact that the announcement coincided with the negotiations between the US and China in Madrid suggests that the accusations are not only a matter of technical regulation, but also contain a strategic message. This raises three main strategic interpretations:
- Increasing Negotiating Power: While China appears open to compromise on TikTok, it wants to increase its bargaining power by putting pressure on strategically important US-based companies such as Nvidia.
- Technology Sovereignty: As part of its strategy to reduce its dependence on foreign companies in advanced technology fields, China is applying regulatory pressure on foreign companies, thus aiming to strengthen domestic alternatives.
- Retaliation Dynamics: Considering the US restrictions on Chinese technologies and licensing limitations on chip exports, the accusations against Nvidia can be read as a retaliatory move.
Possible Impacts
Nvidia is a major player in the Chinese market. Therefore, the investigation could directly affect the company’s revenues, partnerships and investment plans in China. On a broader scale, this development has the potential to create a new wave of uncertainty in global chip supply chains.
The Link between the Two Developments
Although the TikTok deal and the monopolization accusations against Nvidia appear to be in different areas, they are actually parts of the same whole of US-China competition. While the debates over TikTok focus on data security and information flow control, the Nvidia case is shaped around chips that are critical in artificial intelligence, supercomputers and defense technologies. In this framework, China is pursuing a dual-channel strategy, softening relations by adopting a cooperative approach on TikTok, while increasing its bargaining power against the US with its tough regulatory move over Nvidia.
Conclusion and Evaluation
China’s monopolization accusations against Nvidia indicate that the two countries will continue to struggle on different fronts in the field of technology.
In the coming period, these developments will determine not only the strategic balances of the two countries, but also global technology policies and market dynamics. From social media platforms to chip technologies, the competition between the US and China is expected to deepen.
Disclaimer
This content is for informational and educational purposes only and reflects a good-faith synthesis of publicly reported developments. It does not constitute legal, financial, investment, or policy advice, nor does it represent any endorsement of the entities discussed. Facts, figures, and regulatory statuses may change rapidly; you should independently verify information and consult qualified professionals before making decisions. Any forward-looking statements are inherently uncertain and subject to risks outside our control.
