China Opens Antitrust Probe of Qualcomm’s Autotalks Deal

Core Viewpoint - China has initiated an antitrust investigation into Qualcomm's acquisition of Autotalks, highlighting ongoing tensions between the US and China ahead of a significant meeting between their leaders [1][2][3]. Group 1: Qualcomm's Acquisition and Investigation - The State Administration for Market Regulation in China is probing Qualcomm's takeover of Autotalks, announced in June, for potential anti-monopoly law violations [2]. - Qualcomm's shares remained relatively stable at 9:48 a.m. in New York despite the investigation [2]. - This investigation is part of a broader strategy by China to exert pressure on US technology firms amid escalating trade tensions [3]. Group 2: Broader Context of US-China Relations - The investigation into Qualcomm coincides with a period of heightened negotiations between US President Donald Trump and Chinese President Xi Jinping, as both nations seek leverage before the expiration of a US-China trade truce [3]. - In addition to Qualcomm, Chinese regulators are also investigating Nvidia's 2020 acquisition of Mellanox, indicating a wider scrutiny of US tech acquisitions in China [5]. - Recent actions by China, including new export curbs on rare earths and critical materials, reflect ongoing retaliatory measures against US tariffs [4].