According to the Financial Times, China is considering an antitrust investigation of the chipmaker, Intel, which might be collateral damage in the Trump administration’s emerging trade war.
President Donald Trump announced the ongoing probe at the same time he imposed an extra 10% tariff on Chinese imports, pointing to China’s supply of fentanyl-making ingredients.
The new tariffs on China went into effect on Tuesday, but Trump withdrew his threat of taxes on Canada and Mexico this week.
China opened an antitrust probe into Google after retaliating with tariffs of its own on American farm equipment and fossil fuels.
Chinese antitrust authorities announced in December that they will look into Nvidia, a U.S. chip designer.
According to the Financial Times, whether or not the new trade war intensifies will determine whether or not China launches a probe into Intel.
The largest market for Intel is China, which generated over $15 billion in sales last year, or 29% of Intel’s total revenue.
China and Intel used to be close partners. In an attempt to improve ties with the nation, Intel constructed a high-volume factory in the northern city of Dalian at the beginning of the century.
Intel still runs a manufacturing and testing facility in Chengdu, a city in western China, even though it sold the factory three years ago.
Intel has faced increasing obstacles to doing business in China as a result of the worsening U.S.-China relations over the past few years.
The selling of cutting-edge technology into China has been limited by the US government, and in 2023, Chinese antitrust authorities prevented Intel from acquiring contract manufacturer Tower Semiconductor.
Tensions with China are one of the main threats to Intel’s business, according to the company’s recently released annual report.
The idea of China looking into Intel, however, did not immediately scare investors. The company’s stock closed Tuesday at $19.29, down 9 cents.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or [email protected].
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