China launched an antitrust investigation into Qualcomm on Friday. The country’s State Administration for Market Regulation alleged that Qualcomm violated anti-monopoly laws. The market regulator stated that the case was filed because Qualcomm’s acquisition of Autotalks did not comply with the law regarding the declaration of concentration of undertakings. The acquisition of the Israeli firm ended in June, just over two years after it was first announced. Following the news, Qualcomm shares went down 1.26% to $165.55. Chinese regulators accuse Nvidia of violating antitrust laws Beijing launched two investigations last month, including an anti-dumping probe into certain chips imported from the U.S., and another anti-discrimination scrutiny of U.S. restrictions on China’s chip industry. SAMR previously alleged that Nvidia had violated China’s antitrust law. The allegations pertained to Nvidia’s acquisition of Mellanox and certain agreements made during the transaction. The investigation stems from last year, when the SAMR launched an investigation into Nvidia, alleging that the acquisition of the Israeli technology company in 2020 breached anti-monopoly laws. The regulators didn’t specify how Nvidia breached the country’s laws. An Nvidia spokesperson said the firm complied with the law in all respects. Nvidia has faced hurdles in recent months in its relationship with the Chinese market. Earlier this year, the Trump Administration blocked Nvidia’s H20 chips from being exported to China. Nvidia’s CEO, Jensen Huang, urged the U.S. to allow local firms to sell to China, arguing that Beijing’s artificial intelligence market will likely reach $50 billion in the next two to three years. “The world is right now hungry, anxious to engage AI. Let us get the American AI out in front of everybody right now.” -Jensen Huang, CEO of Nvidia. He also warned that the lack of American presence in China would allow domestic players, such as Huawei, to fill the void. Huang mentioned at a tech conference in Washington, D.C., that China is not behind in AI, and that Huawei is one of the most formidable technology companies in the world. Nvidia later agreed in August to give 15% of its revenues from certain chips sold in China, and in turn receive export licenses to sell the H20 chips. According to an FT report, China extended its mandate on Nvidia’s RTX Pro 6000XD chip, limiting imports of the product to Chinese customers. However, the report also revealed that some Chinese firms are prepared to order tens of thousands of the RTX Pro 6000D, and had already started testing and verification work with Nvidia’s server suppliers up until the call for a halt to such activities. China opposes U.S. decision to add more firms to its export-control entity list On Friday, China also opposed the recent U.S. decision to add multiple Chinese firms to its export-control entity list. Beijing called for the U.S. to immediately reverse its decision. A spokesperson for China’s Ministry of Commerce accused Washington of consistently overstretching the concept of national security, abusing export control measures, and arbitrarily exercising long-arm jurisdiction. The MoC’s spokesperson also accused the U.S. of imposing punitive sanctions on multiple entities, including those from Beijing. The announcement followed the U.S. Department of Commerce’s addition of 16 Chinese companies to its Entity List on October 8. The spokesperson argued that the initiative severely undermines the legitimate rights and interests of companies and disrupts the security and stability of global industrial and supply chains. The spokesperson also maintained that China will take all necessary measures to safeguard the legitimate rights and interests of Chinese firms resolutely. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
