China’s anti-monopoly regulator has opened an investigation into GPU designer Nvidia.

The move comes after this month the Biden administration deepened chip sanctions on China, and the Chinese government followed by banning the US export of critical rare earth metals used in semiconductors.

China’s State Administration for Market Regulation said that it was investigating whether Nvidia violated commitments made during its acquisition of networking company Mellanox. The regulator approved the $6.9bn deal in 2020, with conditions to prevent anti-competitive practices and ensure supplies to China.

The US government has repeatedly blocked the sale of high-end Nvidia chips and components to China, causing Nvidia to develop less powerful versions for the market.

China in 2015 fined Qualcomm $975 million for violating China’s antimonopoly law, and forced it to license its technology at a lower price.

The US Justice Department is also investigating Nvidia’s sales practices and its most recent acquisition, as is France's antitrust regulator, and the EU's antitrust body.

Nvidia's share price fell 2.5 percent on news of the latest probe.