Qualcomm Faces Scrutiny Over China Ties

Semiconductor giant's business relationships with Chinese firms raise concerns about national security and economic interests

Mar. 3, 2026 at 6:15am

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A new report argues that American tech companies like Qualcomm, which relies heavily on revenue from China, are making business decisions that risk empowering the Chinese Communist Party and undermining U.S. security interests. The article highlights Qualcomm's investments in Chinese firms linked to mass surveillance and the military, as well as its preferential licensing deals with Chinese smartphone makers, and calls for greater transparency and accountability around how U.S. companies operate in China.

Why it matters

This story highlights the complex and often opaque relationship between American tech companies and the Chinese government, raising concerns that the pursuit of short-term profits may be compromising long-term U.S. economic and national security interests. As the U.S. and China compete for technological supremacy, the decisions made by influential American firms could have far-reaching consequences.

The details

The report alleges that Qualcomm, a major U.S. semiconductor company, has invested in Chinese firms directly linked to human rights abuses and military activities, including SenseTime, which was blacklisted by the U.S. government for its role in monitoring Uyghurs. The company is also said to have offered preferential licensing deals to Chinese smartphone makers, potentially disadvantaging American and allied manufacturers. Critics argue that Qualcomm's business practices in China have strengthened the Chinese government's technological and surveillance capabilities while weakening U.S. export controls and security measures.

  • In the most recent fiscal year, approximately 46% of Qualcomm's sales, or about $17.8 billion, came from customers headquartered in China.
  • In 2015, Qualcomm reached a settlement with Chinese antitrust authorities that included a $150 million investment commitment to Chinese startups and a 35% discount on patent licensing fees for devices sold in China.

The players

Qualcomm

A San Diego-based semiconductor company that is heavily dependent on revenue from China, accounting for nearly half of its sales in the most recent fiscal year.

SenseTime

A Chinese technology firm that was placed on a U.S. government blacklist for its involvement in human rights abuses, including the monitoring of Uyghurs.

James Carter

The author of the report, who previously served in the U.S. Department of Labor and the Trump administration.

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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, Author

“Qualcomm's licensing structure systematically favors low-cost Chinese smartphones over American-made devices. U.S. consumers are effectively subsidizing China's handset industry every time they buy a phone, while American and allied manufacturers face a structural disadvantage.”

— James Carter, Author

What’s next

The report calls for greater transparency around how U.S. tech companies operate in China, including requiring public companies to disclose their revenue dependence on China and any preferential pricing or terms offered to Chinese firms.

The takeaway

This story highlights the delicate balance that American tech companies must strike between competing globally and protecting U.S. economic and national security interests. As the U.S. and China vie for technological supremacy, the decisions made by influential American firms could have far-reaching consequences for the future.