China Opens Antitrust Probe of Qualcomm’s Autotalks Deal

China has targeted another US tech giant ahead of a key meeting of the leaders of the world’s two largest economies, launching a months-long dispute with Qualcomm Inc. launched an investigation into the purchase.

The State Administration for Market Regulation has opened an antitrust investigation into the takeover of vehicle technology provider Autotalks linked to a deal announced in June. In a brief statement, the watchdog said it would investigate possible violations of the country’s anti-monopoly law related to the transaction. Shares of Qualcomm were little changed at 9:48 a.m. in New York.

Beijing is targeting Qualcomm, whose technology is key to smartphones and networking, ahead of talks between US President Donald Trump and his Chinese counterpart Xi Jinping. Both countries are maneuvering to gain an advantage ahead of the end of the US-China trade truce, risking escalation.

China this week announced sweeping new restrictions on exports of rare earth elements and other critical materials, echoing moves made in April in response to Trump’s so-called “Liberation Day” tariffs. It comes as Beijing continues to avoid purchases of American soybeans, further increasing economic pressure on farming communities that largely voted for Trump in 2024.

Apart from Qualcomm, Chinese regulators also announced that they will launch an investigation into Nvidia Corp.’s 2020 acquisition of networking hardware maker Mellanox. The investigation was announced as Beijing and Washington officials clashed over trade and other issues during wide-ranging talks in Madrid about a month ago.

Friday’s announcement also sent shares of Alphawave IP Group Plc falling nearly 6.5% in London. Qualcomm is in the process of acquiring the company in a $2.4 billion deal earlier this year.

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