Beijing -- which announced the investigation in December -- is currently engaged in an intense contest with the United States for supremacy in the critical field of semiconductors.

"Following a preliminary investigation, it has been determined that NVIDIA Corporation has violated the Anti-Monopoly Law of the People's Republic of China," a statement from the State Administration for Market Regulation, Beijing's top market watchdog, said.

The SAMR "has therefore decided to conduct a further investigation into the matter in accordance with the law", it added.

The statement did not provide further details about Nvidia's alleged legal violations or the further probe.

California-based AI powerhouse Nvidia reported earnings last month that raised concerns about its business in China, which has come under increasing scrutiny in Washington as tensions over trade and geopolitics mount.

About an hour before the SAMR announcement, officials began a second consecutive day of bilateral trade talks in Madrid, seeking to narrow differences on a range of issues that have soured ties.