Qualcomm shares fall after China opens antitrust probe into the U.S. chip giant

Qualcomm shares fell connected Friday aft Chinese regulators said it would analyse the American tech giant's acquisition of spot steadfast Autotalks, ramping up tensions betwixt the U.S. and China up of cardinal meetings betwixt the country's leaders this month.

Shares were past astir 3% little successful premarket trading.

China's State Administration of Market Regulation (SAMR) said that Qualcomm is suspected of violating the country's anti-monopoly instrumentality successful regards to its acquisition of Israeli steadfast Autotalks. The acquisition officially closed successful June, conscionable implicit 2 years aft it was archetypal announced.

In a abbreviated statement, the SAMR said it would initiate an probe into Qualcomm.

Qualcomm was not instantly disposable for remark erstwhile contacted by CNBC. The institution sells its smartphone chips to immoderate of the biggest players successful China specified arsenic Xiaomi.

U.S. tech companies person precocious been successful the crosshairs of Chinese regulators ramping up tensions betwixt Beijing and Washington up of cardinal talks.

In September, the SAMR alleged that Nvidia had violated the country's anti-monopoly instrumentality in narration to its acquisition of Mellanox and immoderate agreements made during the acquisition. Meanwhile, Beijing has reportedly been discouraging section firms from buying Nvidia chips.

This week, China besides tightened export controls connected uncommon earths and related technologies. Rare earths are captious to high-tech industries, including automobiles, defence and semiconductors.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to conscionable successful idiosyncratic connected the sidelines of the Asia-Pacific Economic Cooperation forum during the past week of October successful Gyeongju, South Korea.