China has dropped its antitrust investigation into Google, according to a report by the Financial Times. The move is seen as a tactical shift by Beijing, as trade talks between China and the US have intensified over issues involving TikTok and Nvidia. This development indicates a redirection of regulatory focus towards Nvidia, potentially using it as leverage in the ongoing US-China trade negotiations.

The Chinese State Administration for Market Regulation, which initiated the probe against Google in February, has decided to discontinue the investigation. The regulator had previously stated that Google was suspected of violating China’s anti-monopoly law, but did not provide further details on the allegations. Google has not received formal notification of the decision to drop the probe.

The US and China have been engaged in a trade dispute over the past six months, with the US imposing massive tariffs on Chinese goods, which were later reduced to 30%. China responded with its own tariffs and launched antitrust probes into US companies, including Alphabet’s Google. The probe into Google was part of China’s efforts to increase regulatory scrutiny on US firms.

Recently, China accused Nvidia of violating its anti-monopoly law, following a preliminary investigation into the company’s business practices. This move is seen as part of the escalating trade tensions between the two countries. The US had threatened to shut down the popular social media app TikTok, prompting China to respond with its own measures.

The decision to drop the Google probe and shift focus to Nvidia may signal a willingness by China to negotiate and find common ground with the US. The ongoing trade talks between the two countries are expected to continue, with the US seeking to address concerns over intellectual property and trade practices. The outcome of these talks remains uncertain, but the latest development suggests that China is exploring different approaches to manage its trade relationships with the US.