China Opens Antitrust Investigation Into US Chipmaker Qualcomm
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The Chinese communist regime has launched an antitrust investigation into Qualcomm, targeting another U.S. chip giant amid ongoing trade tension with Washington.
The regime’s State Administration of Market Supervision said in a brief statement on Oct. 10 that the probe is related to Qualcomm’s acquisition of Israeli vehicle chipmaker Autotalks, a deal unveiled four months ago.
The regime’s regulator said it would examine potential breach of the country’s anti-monopoly law in the takeover.
Shares of Qualcomm, a major supplier of smartphone chips, were down 2.8 percent in U.S. premarket trading.
In the Oct. 10 notice, the Chinese regime’s antitrust authorities didn’t say what Qualcomm might have done wrong, or explain why it was raising the issue months after the acquisition deal was completed.
China’s antitrust law allows its regulatory authorities to impose fines of up to 10 percent of targeted companies’ revenue from the previous year.
A spokesperson for Qualcomm told The Epoch Times that the company is fully cooperating with the Chinese antitrust authorities on this matter.
“Qualcomm is committed to supporting the development and growth of our customers and partners,” the spokesperson said in a statement via email.
However, on Oct. 10, Trump said that China has become “hostile” and threatened to cancel the planned meeting.
He indicated that the United States may impose new tariffs on China.
“One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” he wrote. “There are many other countermeasures that are, likewise, under serious consideration.”
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