China has launched a new antitrust investigation into the US chip giant Qualcomm over its recent acquisition of the Israeli company Autotalks. The move is the latest in a series of regulatory crackdowns on American tech firms and is likely to add to the growing tensions between the two countries.
China’s market regulator said on Friday that it is investigating whether Qualcomm broke the law by not properly declaring all the details of its deal to buy Autotalks. This company makes special chips for cars to help prevent crashes. Qualcomm announced it had finalized the deal back in June, but did not disclose the price. The company had previously said it was dropping the bid after failing to get regulatory approvals in time, so the final deal came as a surprise.
This isn’t the first time Qualcomm has been in hot water with Chinese regulators. In 2015, the company paid a massive $975 million fine to settle another antitrust case in the country. This latest probe comes just a month after Beijing accused another major U.S. chipmaker, Nvidia, of violating its anti-monopoly laws.
The investigation is a major concern for Qualcomm, which gets a huge portion of its revenue from Chinese customers. As one analyst put it, the announcement “amplifies existing investor caution around geopolitical and regulatory risk.” The timing is also sensitive, as US President Donald Trump and Chinese leader Xi Jinping are expected to meet at a summit later this month.
