China opens antitrust probe into the U.S. chip giant Qualcomm

Qualcomm shares fell 4% on Friday after Chinese language regulators mentioned they’d examine the American tech big’s acquisition of chip agency Autotalks, ramping up tensions between the U.S. and China forward of key conferences between the nation’s leaders this month.

China’s State Administration of Market Regulation (SAMR) mentioned that Qualcomm is suspected of violating the nation’s anti-monopoly legislation with reference to its acquisition of Israeli agency Autotalks. The acquisition formally closed in June, simply over two years after it was first introduced.

In a brief assertion, the SAMR mentioned it will provoke an investigation into Qualcomm.

The U.S. chipmaker mentioned in a press release that it’s totally cooperating with SAMR and “is dedicated to supporting the event and progress of our prospects and companions.”

Qualcomm sells its smartphone chips to a number of the largest gamers in China, comparable to Xiaomi.

U.S. tech firms have lately been within the crosshairs of Chinese language regulators, ramping up tensions between Beijing and Washington forward of key talks.

In September, the SAMR alleged that Nvidia had violated the nation’s anti-monopoly legislation in relation to its acquisition of Mellanox and a few agreements made throughout the acquisition. In the meantime, Beijing has reportedly been discouraging local firms from shopping for Nvidia chips.

This week, China additionally tightened export controls on rare earths and associated applied sciences. Uncommon earths are essential to high-tech industries, together with vehicles, protection and semiconductors.

U.S. President Donald Trump and his Chinese language counterpart Xi Jinping are anticipated to satisfy in individual on the sidelines of the Asia-Pacific Financial Cooperation discussion board over the last week of October in Gyeongju, South Korea.