China opens probe into Qualcomm's Autotalks acquisition

"China's competition regulator has launched an investigation into Qualcomm's purchase of Israeli firm Autotalks, the latest salvo in the escalating tech trade war between Washington and Beijing. The State Administration for Market Regulation (SAMR) described its probe as routine, according to state-run broadcaster CGTN, yet the timing is pointed. It came as China tightened exports of rare earth metals last Thursday, ratcheting up tensions with the US."

"Qualcomm has now attracted scrutiny for its acquisition in June of Autotalks, an Israeli firm "devoted to vehicle-to-everything (V2X) communications." The company has operations in North America, Germany, France, China, Japan, and Korea - all the major automaking powers. Qualcomm had abandoned an earlier bid for Autotalks over concerns about regulatory approval. Presumably, the San Diego-based chip giant felt approvals were in the bag when it finally sealed a deal earlier this summer."

"However, SAMR has reportedly questioned whether Qualcomm jumped the gun, failing to inform the regulator of key details. Carthage Capital founder and managing partner Stephen Wu notes that China is pushing for standardization of vehicle communications. Wu added that SAMR could have imposed a "no-harm jumping the gun penalty" but might be eyeing up more stringent action. Citing an SAMR official, CGTN said: "The authority intervened although the deal fell below standard notification thresholds, as it had evidence the merger could have an anti-competitive effect.""

China's State Administration for Market Regulation opened a probe into Qualcomm's purchase of Israeli V2X firm Autotalks and described the action as routine. The investigation coincided with China tightening rare earth exports and U.S. tariff threats, intensifying tech trade tensions. Qualcomm completed the June acquisition after abandoning an earlier bid due to regulatory concerns. SAMR reportedly questioned whether Qualcomm failed to disclose key details and had told the firm in 2024 to file for review, which Qualcomm had not done when the deal resumed. Observers note China is pushing for vehicle-communications standardization and SAMR may seek penalties or stricter remedies.

Read at Theregister