In a trade war, China has weapons in its arsenal beyond tariffs

Scott Tong Jul 25, 2018
HTML EMBED:
COPY
Qualcomm CEO Steve Mollenkopf speaks during a press event at the Mandalay Bay Convention Center for the 2014 International CES on January 6, 2014 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 7-10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. Justin Sullivan/Getty Images

In a trade war, China has weapons in its arsenal beyond tariffs

Scott Tong Jul 25, 2018
Qualcomm CEO Steve Mollenkopf speaks during a press event at the Mandalay Bay Convention Center for the 2014 International CES on January 6, 2014 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 7-10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. Justin Sullivan/Getty Images
HTML EMBED:
COPY

The American semiconductor titan Qualcomm found itself in the crosshairs of the US-China trade spat when its mega deal — as in $44 billion dollars — to buy a Dutch chip-maker has cleared every global regulatory approval required — except in China. With no approval from China in sight and a deadline looming at midnight tonight, Qualcomm has announced that pending any new material developments, it will terminate the deal and instead buy back its own stock. This is just one way China can punish American firms doing business there as the tariff war heats up.

Click the audio player above to hear the full story. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.