TLDR
- Qualcomm shares dropped over 4% after China launched an antitrust probe into its Autotalks acquisition
- Beijing imposed new port fees on US vessels starting October 14, matching Washington’s planned Chinese ship charges
- China expanded rare earth export controls to 12 of 17 elements, keeping trade leverage intact
- Trump and Xi plan to meet at the APEC summit in South Korea during the final week of October
- China halted US soybean purchases, targeting American farming communities ahead of negotiations
China’s State Administration of Market Regulation opened an antitrust investigation into Qualcomm on Friday, examining the chipmaker’s purchase of Israeli firm Autotalks. Shares fell more than 4% in pre-market trading following the announcement.
The regulator claims Qualcomm violated China’s anti-monopoly law with the acquisition. Autotalks specializes in vehicle-to-everything communication technology. The deal closed in June 2025, over two years after it was first announced.
Qualcomm supplies smartphone chips to major Chinese manufacturers like Xiaomi. The company has not yet commented on the investigation.
China also announced new port fees on US ships beginning October 14. This date matches when Washington plans to impose charges on large Chinese vessels. Beijing expanded rare earth export controls this week, now covering 12 of 17 metallic elements.
Trade War Escalates Before Summit
The investigation comes as Presidents Trump and Xi prepare to meet at the APEC summit in South Korea. The leaders will convene during the last week of October in Gyeongju.
A tariff truce that saw US levies reach 145% expires November 10 unless extended. Both nations are positioning themselves before negotiations begin.
China halted US soybean purchases, pressuring American farming communities that supported Trump in 2024. Trump specifically mentioned soybeans when discussing potential talks with Xi.
The Trump administration proposed barring Chinese airlines from flying over Russia on US routes. Washington expanded sanctions preventing Huawei from accessing restricted American goods.
Qualcomm isn’t the first US tech company facing Chinese regulatory scrutiny. In September, regulators alleged Nvidia violated anti-monopoly law with its Mellanox acquisition. Beijing has discouraged local firms from buying Nvidia chips.
Rare Earth Controls Tighten
Heavy rare earths are almost exclusively produced by China. They power high-performance magnets, semiconductors and military systems. China dominates the separation and refining capacity for these materials.
South Korea, Japan, the US, Germany and Canada are the top buyers of newly restricted minerals. Export permit delays earlier this year disrupted companies across Europe and Asia.
Julian Evans-Pritchard from Capital Economics called the approach risky. He said it complicates talks with the US even if successful.
Trump said he might restrict product sales to China without offering details. “We import from China massive amounts,” Trump stated. “Maybe we’ll have to stop doing that.”
Negotiations Ahead
Despite tensions, Beijing signaled willingness to negotiate. Premier Li Qiang said the economies “can and should become friends and partners” during UN meetings last month.
China reportedly floated $1 trillion in potential investments. This exceeds commitments from the European Union, Japan and South Korea combined.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are handling the issues. Trump said they would work on details without elaborating further.
Citigroup economists noted both countries are strengthening leverage in trade talks. They suggested the fragile tariff truce could continue.
The five rare earth elements still exempt from controls are light rare earths. These are more abundant, easier to mine and less strategically constrained than heavier varieties.
