Why China is going after multinationals
Speculation as to why China has been attacking multinationals abounds. Some cite the slowing Chinese economy, while others refer to decisions emanating from the latest Communist Party Central Committee meeting. Meanwhile, the Chinese government is pushing for Chinese companies to compete harder against their foreign competitors.
Qualcomm told the Wall Street Journal recently that it expects to continue growing in China, but Chief Executive Paul Jacobs acknowledged US restrictions on Chinese companies and revelations about surveillance by the National Security Agency are impacting its business in the fast-growing country.
"We are definitely seeing increased pressure," said Jacobs in an interview with The Wall Street Journal. "All U.S. tech companies are seeing pressure."
Cisco earlier this month warned that the company's revenue could drop as much as 10% this quarter, and continue to contract through the middle of next year, in part due to a backlash in China after revelations about US government surveillance programs.
Qualcomm said in a statement on Monday that the company is "not aware of any charge by the NDRC" that it violated China's Anti-Monopoly Law. Qualcomm added, "We will continue to cooperate with the NDRC as it conducts its confidential investigation."
— Junko Yoshida, Chief International Correspondent, EE Times