Qualcomm Faces Scrutiny Over China Ties, Raising US Security Concerns

Tech giant's business relationships with Chinese firms linked to surveillance, military raise questions about corporate accountability in US-China competition.

Published on Feb. 28, 2026

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James Carter, a former U.S. Department of Labor official, argues that American companies operating in critical technology fields like 5G, AI, and semiconductors play a decisive role in the high-stakes competition between the U.S. and China. He cites Qualcomm as a prime example, highlighting the San Diego-based semiconductor giant's heavy reliance on China for revenue and its investments in Chinese firms tied to mass surveillance and the People's Liberation Army, which he says undermine U.S. security interests.

Why it matters

This case highlights the broader debate over the role of U.S. corporations in the strategic competition with China, and whether their business decisions are prioritizing short-term access to the Chinese market over the long-term economic and security interests of the United States.

The details

According to the article, approximately 46% of Qualcomm's sales, or $17.8 billion, came from customers headquartered in China in the most recent fiscal year. This level of dependence on the Chinese market creates incentives for Qualcomm to accommodate Beijing, even when doing so may harm American interests. The article cites Qualcomm's investments in Chinese firms linked to human rights abuses and military-industrial projects, as well as the company's willingness to accept a 'relative win' in a 2015 antitrust settlement with Chinese authorities that included a $150 million investment commitment and a 35% discount on patent licensing fees for devices sold in China.

  • In the most recent fiscal year, approximately 46% of Qualcomm's sales came from customers headquartered in China.
  • In 2015, Qualcomm reached a settlement with Chinese authorities during an antitrust investigation.

The players

Qualcomm

A San Diego-based semiconductor company that is heavily dependent on the Chinese market, with approximately 46% of its sales coming from customers headquartered in China.

SenseTime

A Chinese firm that was placed on a U.S. government blacklist for its involvement in human rights abuses, including the monitoring of Uyghurs in Xinjiang. Qualcomm has reportedly invested in SenseTime.

James Carter

A former U.S. Department of Labor official who oversaw the department's international portfolio and later served in the Trump administration and the America First Policy Institute.

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What they’re saying

“While businesses must have the freedom to compete in global markets, that freedom cannot extend to practices that undermine America's long-term economic and security interests.”

— James Carter, Former U.S. Department of Labor official (dailycaller.com)

What’s next

The article suggests that public companies should be required to disclose how much of their revenue depends on China and whether they offer preferential pricing or terms there. It also calls for more transparency when U.S. capital and expertise flow into Chinese military or surveillance projects.

The takeaway

This case highlights the need for greater corporate accountability and scrutiny of American companies' business relationships with China, especially in critical technology sectors where their decisions can have significant implications for U.S. economic and national security interests.