The Asia-Pacific Economic Cooperation (APEC) summit is approaching as the Chinese Communist Party (CCP) has announced an antitrust investigation against the American chip giant Qualcomm. This move has sparked strong reactions in the market, with Qualcomm’s stock falling approximately 4% in pre-market trading on Wall Street. Analysts believe that this is another move by the CCP following the escalation of restrictions on rare earth exports.
The State Administration for Market Regulation of China announced on the 10th that, due to Qualcomm’s acquisition of Israeli company Autotalks, which was not reported in accordance with the law on operator concentration, it is suspected of violating China’s antitrust law. The authorities have initiated an investigation against Qualcomm in accordance with the law.
In June of this year, Qualcomm announced that its subsidiary, Qualcomm Technologies, had completed the acquisition of Autotalks in Israel.
Autotalks is an Israeli fabless supplier that was founded in 2008, specializing in Vehicle-to-Everything (V2X) communication technology for the automotive industry. Its main products include chip solutions for vehicle connectivity, road safety, and autonomous driving.
As early as May 2023, Qualcomm announced its intention to acquire Autotalks, but due to the failure to obtain regulatory approval in time, the acquisition was terminated in March 2024. More than a year later, in June 2025, Qualcomm announced that the acquisition of Autotalks had received all regulatory approvals, and Autotalks would be fully integrated into Qualcomm’s automotive division.
Qualcomm stated that through this acquisition, automakers and a broader ecosystem would have access to a comprehensive, mass-producible, and globally compliant V2X solution set for deployment in roadside infrastructure, vehicles, and motorcycles. These solutions are aimed at enabling direct communication to help address current safety and efficiency issues, and enhance the development of advanced safety features and superior experiences in the next generation of automotive assistance and autonomous driving.
According to reports from Radio France Internationale, Qualcomm is a semiconductor and wireless communication technology R&D company based in San Diego, California, United States. As President Trump is expected to meet with Xi Jinping during the APEC summit in South Korea, Beijing is now targeting Qualcomm, whose technology is crucial for smartphones and networks.
Both Beijing and Washington are stepping up their game as the U.S.-China trade truce agreement expires, even in the face of the risk of escalating tensions. This week, China announced comprehensive restrictions on the export of rare earths and other key materials and is now directing its focus on Qualcomm.
Meanwhile, China continues to avoid purchasing American soybeans, adding economic pressure on the agricultural communities in the United States, which largely supported Trump in the 2024 election.
Prior to this, the State Administration for Market Regulation of China had twice launched antitrust investigations against Nvidia, during the 4th economic and trade negotiations between the U.S. and China in Madrid. Experts believe that this is a typical case of the CCP using domestic regulatory tools to gain leverage in international disputes.