Just hours before President Donald Trump said that the United States would impose a new tariff of 100% on imports from China “over and above any Tariff that they are currently paying,” starting on November 1, China had opened an investigation into Qualcomm , one of America's most important semiconductor companies. China’s State Administration for Market Regulation announced Friday, October 10, an antitrust investigation into Qualcomm regarding its acquisition of Israeli chip designer Autotalks. The probe will examine whether Qualcomm violated China’s antitrust laws by failing to properly declare details of the deal, finalized in June 2025.
The investigation is part of a broader escalation of tensions between Beijing and Washington, with US chip companies facing heightened scrutiny in China. The move against Qualcomm comes amid a flurry of Chinese actions targeting US interests, including new export restrictions on rare-earth materials and lithium batteries. On October 10, China also said that it plans to impose a special port fee on U.S. vessels docking at Chinese ports, retaliating against the Trump administration’s move to levy fees on Chinese ships.
Just a day earlier, October 9, Beijing also added Canada-based semiconductor research firm TechInsights to its “unreliable entity list” for its reports on Huawei’s chip development. Last month, China’s antitrust regulator accused Nvidia of breaching anti-monopoly laws related to a 2020 acquisition.
Trump announces extra 100% tariff on China imports
Trump on Friday said that the United States would impose new tariffs of 100% on imports from China. He said that the US, on that same date, would also impose export controls on “any and all critical software.” The president’s announcement came hours after he threatened to slap “a massive increase” of tariffs on Chinese imports in retaliation for new controls that China imposed on exports of rare earths minerals from that nation.
Trump also hinted that he would cancel a meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea because of China’s new controls.
Qualcomm's acquisition of Israel-based Autotalk
Qualcomm’s acquisition of Autotalks, a maker of vehicle-to-everything (V2X) communication chips designed to prevent car crashes, integrated advanced technology into Qualcomm’s Snapdragon car stack. This aligns with China’s push to standardize V2X communication across pilot regions by 2026. However, according to a report in Reuters, Stephen Wu, founder of Carthage Capital, suggested that China’s probe could signal broader pressure on U.S. chip and automotive supply chains. “China could have imposed a minor penalty for procedural issues, but a higher sanction may indicate a strategic move,” Wu said.
Qualcomm, based in San Diego, faced similar scrutiny in 2015, paying a $975 million fine to settle a Chinese antitrust case. The company had briefly abandoned the Autotalks deal in 2024 due to regulatory delays but completed it earlier this year. Neither Qualcomm nor Autotalks responded to requests for comment on the investigation.
The probe coincides with heightened U.S.-China tensions ahead of an anticipated meeting between President Donald Trump and Chinese leader Xi Jinping. Beijing’s recent actions, including export controls and sanctions, threaten to disrupt the fragile trade balance between the two nations, with semiconductors at the forefront of the dispute.
The investigation is part of a broader escalation of tensions between Beijing and Washington, with US chip companies facing heightened scrutiny in China. The move against Qualcomm comes amid a flurry of Chinese actions targeting US interests, including new export restrictions on rare-earth materials and lithium batteries. On October 10, China also said that it plans to impose a special port fee on U.S. vessels docking at Chinese ports, retaliating against the Trump administration’s move to levy fees on Chinese ships.
Just a day earlier, October 9, Beijing also added Canada-based semiconductor research firm TechInsights to its “unreliable entity list” for its reports on Huawei’s chip development. Last month, China’s antitrust regulator accused Nvidia of breaching anti-monopoly laws related to a 2020 acquisition.
Trump announces extra 100% tariff on China imports
Trump on Friday said that the United States would impose new tariffs of 100% on imports from China. He said that the US, on that same date, would also impose export controls on “any and all critical software.” The president’s announcement came hours after he threatened to slap “a massive increase” of tariffs on Chinese imports in retaliation for new controls that China imposed on exports of rare earths minerals from that nation.
Trump also hinted that he would cancel a meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea because of China’s new controls.
Qualcomm's acquisition of Israel-based Autotalk
Qualcomm’s acquisition of Autotalks, a maker of vehicle-to-everything (V2X) communication chips designed to prevent car crashes, integrated advanced technology into Qualcomm’s Snapdragon car stack. This aligns with China’s push to standardize V2X communication across pilot regions by 2026. However, according to a report in Reuters, Stephen Wu, founder of Carthage Capital, suggested that China’s probe could signal broader pressure on U.S. chip and automotive supply chains. “China could have imposed a minor penalty for procedural issues, but a higher sanction may indicate a strategic move,” Wu said.
Qualcomm, based in San Diego, faced similar scrutiny in 2015, paying a $975 million fine to settle a Chinese antitrust case. The company had briefly abandoned the Autotalks deal in 2024 due to regulatory delays but completed it earlier this year. Neither Qualcomm nor Autotalks responded to requests for comment on the investigation.
The probe coincides with heightened U.S.-China tensions ahead of an anticipated meeting between President Donald Trump and Chinese leader Xi Jinping. Beijing’s recent actions, including export controls and sanctions, threaten to disrupt the fragile trade balance between the two nations, with semiconductors at the forefront of the dispute.
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