China opens an antitrust investigation into US chip giant Qualcomm

Qualcomm Stocks fell on Friday after Chinese regulators said they would investigate the US tech giant’s acquisition of chip company Autotalks, exacerbating tensions between the US and China ahead of key meetings between the country’s leaders this month.

China’s State Administration for Market Regulation (SAMR) said Qualcomm is suspected of violating the country’s antitrust law in connection with its acquisition of Israeli company Autotalks. The acquisition officially closed in June, just over two years after it was first announced.

In a short statement, SAMR said it would launch an investigation into Qualcomm.

Qualcomm was not immediately available for comment when contacted by CNBC. The company sells its smartphone chips to some of the biggest players in China, e.g Xiaomi.

US technology companies have recently been in the crosshairs of Chinese regulators, escalating tensions between Beijing and Washington ahead of key talks.

In September, SAMR claimed as much Nvidia It violated the country’s antitrust law In connection with its acquisition of Mellanox And some agreements concluded during the acquisition process. Meanwhile, Beijing was reported to be Discouraging local businesses From buying Nvidia chips.

And this week, China too Tighter export controls on rare earths and related technologies. Rare earths are essential to high-tech industries, including automotive, defense, and semiconductors.

US President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet in person on the sidelines of the Asia-Pacific Economic Cooperation Forum during the last week of October in Gyeongju, South Korea.