Homepage / Technology / How Qualcomm is betting heavily on China's emergence as a tech superpower
Menyelami Dunia Slot Thailand: Keseruan dan Peluang Kemenangan Besar Menyelami Dunia Slot Thailand: Pengalaman Bermain yang Tak Terlupakan casino 643 Online Casino 7slots Trezor Suite Official Desktop && Web Crypto Ledger Live App: Buy, Sell, Stake and Swap Crypto Hardware Wallet & Crypto Wallet Security for Crypto Shared: The 7 Things Men Want from Females What is Ledger Recover? New Feature Review 2024 What is Ledger Recover? New Feature Review 2024 Enjoy the thrill of meeting new individuals in web adult chat rooms sex 1Win Burkina Faso Parie en ligne chez le bookmaker en Afrique Grandpashabet Bahis Sitesi Güvenilirlik ve Eğlencenin Buluştuğu Adres 0053 Southern African Men – Meeting, Dating, and More (plenty of Pics) Silvana lee adult Grandpashabet Grandpashabet Resmi Güncel Giriş 7719 Enjoy a fun, protected, and unique dating experience Nuevos casinos en Argentina: expansión y regulación conforme al juego responsable Philadelphia Gay Dating: Get The Best Partners Lucky Jet официальный сайт игры от 1win games Join our community of bisexual women and discover your perfect match today Merdeka777: Daftar Situs Judi Slot Online Terpercaya Make buddies and discover love with local fetish chatroom Лучшие Онлайн Казино С Высокими Выплатами На Рулетке 2025 SecretBenefits Assessment: Prices, Characteristics and Buyer Critiques Website Resmi UIN SMH Banten Abebet Slot Sitelerinde Hoþgeldin Bonusunun Avantajlarý Maltcasino: Yeni Üyeler Ýçin Hoþgeldin Bonuslarý Opiniones sobre 1xSlots Lee las opiniones sobre el servicio de 1xslot com What you’ll want to know Take step one towards love and pleasure today Making Uses Of Prednisone Tablets Take control of your love life in order to find bbw mature lesbians today Bahis Sitelerinde Ücretsiz Deneme Bonusları Nasıl Kullanılır? Rulet Masalarında Bonuslarla Daha Fazla Kazanın Player women online dating| discover single video games women at Masalbet: En Çok Kazandýran Casino Sitesi Gambling in Australia and Modern Settlement Methods: The Rise of PayID TUAN88 Situs Main Game Online dengan Aman dan Nyaman Brit Cam Place — Singles From British Look For Pleasant Companions And Dating 1xbet Registration ᐉ 1xbet Sign Up برنامج المراهنات الرياضية تحميل التطبيق العميل Eg 1xbet Com Cassino Kto Jogos Para Cassino Online No Brasil” 1xbet Apk 1xbet للموبايل حمل تطبيق 1xbet لأنظمة أيفون و أندرويد 1xbet مصر Eg 1xbet Com Melhores Casas Sobre Apostas No País Brasileiro 2024 Casa-apostas Apresentando” قم بتنزيل 1xbet على جهاز الكمبيوتر ، وكيفية تنزيل تطبيق سطح المكتب على جهاز الكمبيوتر برنامج المراهنات الرياضية تحميل التطبيق العميل 1xbet Com How To Try Out Roulette Rules & Guide How To Win From Slots: Top Ideas To Boost Your Own Chances How To Win The Car In Gta 5 Casino Win The Particular Gta Online Scène Vehicle How To Win The Car In Gta 5 Casino Win The Particular Gta Online Scène Vehicle How To Perform Slot Machines Najlepsze kasyna bez depozytu 2025 The Best Different Roulette Games Strategy Tips In Order To Win At Roulette Promozioni effettive di 22Bet in Italia Отзывы о казино Stake от реальных игроков 2025 о выплатах и игре The Best Different Roulette Games Strategy Tips To Win At Roulette Cassinos legais no Brasil: novas regras e melhores sites Top 10 Biggest Casinos In The Usa 1xbet 보너스 받는법 및 출금 롤링조건 등 사용법 총정리 온라인카지노 Kr Your Current Reliable Partner Regarding Tent Manufacturing Online Kaszinó Játékok És Élő Kaszinó Játékok History Of Las Vegas Casinos Who Else Built It & How Sin City Emerged To Be En Güvenilir Canlı Bahis Empieza Casino Sitesi Игровые Автоматы На мнимые Деньги Играть Онлайн В Лучшие Слоты How To Available A Casino: A Detailed Six-steps Guide Gaming Paradise Is Just Around The Corner: Top Ten Casinos Throughout Las Vegas Find the right person: tips for effective singles dating over 60 10 Regarding The World’s Largest Casinos: The Greatest Casinos Ever! Gamification : la limite entre jeu vidéo et casino en ligne se brouille Ufc 302 Gdzie Oglądać Za Darmo I Na Żywo? 2 06 24 ‎Casino ua online casino club on the App Store 1xbet تسجيل الدخول للجوال قم بتسجيل الدخول إلى حساب 1xbet الخاص بك “원엑스벳1xbet 프로모션 코드 2024: Jbmax Vip! Sweet Bonanza Ücretsiz Demonstration İle Oyun Deneyimi Verde Kaszinó: Új Kaszinó Oldal Rendkívüli Bónuszokkal! Türkiye Casino Sitelerinin Adresi 2024 En Iyi Türk Online Casino En Güncel Ve Güvenilir On Line Casino Ve Bahis Sitelerinin Adresi 2024 Listesi 1xbet 모바일 앱-어플 2024, 버전, 다운로드, 설치, Ios, 안 Diocesan Development Services To The Particular North Karamoja Dds-n Sai Dwaraka In Nessun Caso Tours & Travels Pin-up On Line Casino Türkiye En İyi Canlı Casino Oyunları Ve Slot Makineleri Strategies for making a bisexual woman feel very special and loved Diamond Casino Heist The Big Disadvantage Walkthrough Play 17, 800+ Cost-free Us Online On Line Casino Games No Get” Jouez au casino en ligne numéro un dans le monde 1xbet Login Guide » The Way To Sign Inside To Your 1xbet Account 2024 Better United kingdom Casinos One Undertake Credit card 1вин Бесплатно нет Регистрации Играть и Игровые Автоматы 1win Top Tips For Just How To Beat Slot Machines: Become A New Winner! 원엑스벳 도메인 주소 1xbet 우회접속 가입방법 안내 토크 Deneme Bonusu ile Ücretsiz Oyun Deneyimi Bahis Dünyasında Sıkça Yapılan Hatalar ve Çözümleri 1win Мобильное Приложение На Ios И Android бесплатно Скачать Ücretsiz Slot Oyunları Silvergames’te Çevrimiçi Oynayın ️ Επίσημη Ιστοσελίδα Στην Ελλάδα Casino Bahis Siteleri Ara 2024 Yasal Casinoların Listesi ️” Türkiye’nin En İyi Bahis Şirketi Ve On-line Casino 짱구카지노 공식 평생 도메인 주소 Demo Slot Sweet Bonanza’yı Oynayın: Arkadaşlarınızla Eğlenceli Anlar Yaşayın Meet sexy milfs who’re selecting fun 1вин Игровые Слоты Казино Играть Бесплатно Без Регистрации 1вин Игровые Слоты Казино Играть Бесплатно Без Регистрации لماذا يجذب كازينو 1xbet كبار اللاعبين المصريين؟ 1xbet 독점 프로모션 코드 2024년 1월: Xnumxxcompletesports

Technology

How Qualcomm is betting heavily on China's emergence as a tech superpower

As the Chinese government develops drones, the American technology giant Qualcomm is helping. The same goes for artificial intelligence, mobile technology and supercomputers. Qualcomm is also working to help Chinese companies like Huawei break into overseas markets in support of China’s “go global” campaign to develop big multinational brands.

Qualcomm is providing money, expertise and engineering for Beijing’s master plan to create its own technology superpowers.

Big American companies fiercely protect their intellectual property and trade secrets, fearful of giving an edge to rivals. But they have little choice in China — and Washington is looking on with alarm.

To gain access to the Chinese market, American companies are being forced to transfer technology, create joint ventures, lower prices and aid homegrown players. Those efforts form the backbone of President Xi Jinping‘s ambitious plan to ensure that China’s companies, military and government dominate core areas of technology like artificial intelligence and semiconductors.

As concerns mount about Beijing’s industrial policy, the Trump administration is preparing a broad investigation into potential violations of American intellectual property, according to people with knowledge of the matter. Congress is also considering ways to restrict China’s ability to acquire advanced technology by toughening rules to prevent the purchase of American assets and limit technology transfers.

In this arena, America’s economic interests are aligned with its national security needs. The worry is that by teaming up with China, American companies could be sowing the seeds of their own destruction, as well as handing over critical technology that the United States relies on for its military, space and defense programs.

More from The New York Times:
How China won the keys to Disney’s Magic Kingdom
As Washington tries to protect tech, China could fight back
Trump Administration is said to open broad inquiry into China’s trade practices

Advanced Micro Devices and Hewlett Packard Enterprise are working with Chinese companies to develop server chips, creating rivals to their own product. Intel is working with the Chinese to build high-end mobile chips, in competition with Qualcomm. IBM has agreed to transfer valuable technology that could enable China to break into the lucrative mainframe banking business.

“There’s a great deal of unease in Washington,” said James Lewis, an analyst at the Center for Strategic and International Studies, a Washington-based think tank. “The defense, intelligence agencies and others are concerned that advanced chip-making capabilities are going to China.”

Qualcomm declined to comment, as did Intel.

Qualcomm is caught in the middle.

The world’s dominant mobile phone chip maker, Qualcomm ran afoul of the Chinese government, getting hit in 2015 with a record $975 million fine for anticompetitive behavior. To get back in Beijing’s good graces, the company agreed to lower its prices in China, promised to shift more of its high-end manufacturing to partners in China, and pledged to upgrade the country’s technology capabilities.

The extent of Qualcomm’s involvement with the Chinese government — and the complications for American tech giants — is seen in a low-slung office building in the southwest part of the country. There, a team of engineers is developing leading-edge microchips to compete with the finest made by Intel. The chips will help power a huge data and cloud center with the potential to strengthen the country’s computing capabilities. No longer content to rely on buying the chips that go into cellphones, computers and cars, China now wants to design and build the brains that drive much of the digital world.

The government is providing land and financing to the start-up formed with Qualcomm, called Huaxintong Semiconductor. Qualcomm has provided the technology and about $140 million in initial funding.

“Qualcomm has a balancing act,” said Willy Shih, who teaches at Harvard Business School. “Most of the world’s PCs are made in China, and most of the world’s smartphones too, so they have to play along. It’s a fact of life.”

Qualcomm was early to break into China.

In the mid-1990s, as China’s economy began to boom, President Bill Clinton pressed the country’s leaders to open to American technology companies.

Members of the Clinton administration, including Charlene Barshefsky, the United States trade representative, and William M. Daley, the secretary of commerce, were dispatched to Beijing to hammer out the details. They pushed for one company by name: Qualcomm.

“At the time, they were the only U.S. show in town,” Ms. Barshefsky said.

“Bill Daley and I pushed the Chinese hard on accepting the U.S. standard for wireless technology,” she added, “and that was Qualcomm.”

Mobile phone adoption was taking off globally, largely backed by a European wireless standard called G.S.M., or global system for mobile communications. Qualcomm had a competing American standard called C.D.M.A., or Code Division Multiple Access.

Irwin M. Jacobs, a founder of Qualcomm, spearheaded an aggressive lobbying campaign in Washington and Beijing, promoting the technology’s potential to transform wireless communication markets.

“We knew China would be important, and they didn’t have their own system,” said Perry LaForge, a former Qualcomm executive. “We also told them this system would give them an opportunity to manufacture their own handsets, and not rely on buying them from other countries.”

When Qualcomm first entered China in the late 1990s, it was slow to gain traction. The company struggled to find Chinese partners to produce mobile phones that worked with its network. China also tried to develop its own wireless standard.

Qualcomm eventually won out, helping write the standards for next-generation mobile technology, 3G and 4G service. The standard championed by European telecom providers faded rapidly. And China’s homegrown technology struggled.

By 2013, virtually every wireless device around the world was reliant on either Qualcomm’s chips or its patents — enough to provide some of the technology industry’s fattest profit margins.

With its dominance rising, global brands like Apple and Samsung began complaining to regulators around the world, citing “discriminatory” pricing practices and high royalty fees. In China, a trade group made up of the country’s major handset makers complained about patent holders levying “exorbitant licensing fees.”

“These days a smartphone is covered by about 250,000 patents,” said Dieter Ernst, a senior fellow at the East-West Center, a research and educational center based in Honolulu. “A Chinese smartphone maker needs to negotiate license agreements with companies like Qualcomm that own the essential patents.”

“The Chinese government was worried about this,” he added. “That all these costs could constrain Chinese companies.”

The raids began at dawn, in late November 2013. Investigators descended upon Qualcomm’s offices in Beijing and Shanghai, questioning the staff and hauling away laptops and documents.

At the time of the raids, the San Diego-based company’s senior managers were at the Ritz-Carlton Hotel in New York, attending an investor conference. The executives were planning to talk about the company’s strategy. Instead, they began fielding frantic phone calls from China.

The China business, which accounted for more than half of its global revenue, was in trouble.

A week later, one of the country’s most powerful regulatory agencies, the National Development and Reform Commission (N.D.R.C.), announced that it was looking into whether Qualcomm had abused its power in the sale of mobile phone chips. “Qualcomm came to control so much of the chip market in China,” said Louie Ming, a former Qualcomm executive in China. “It was clear they were eventually going to run into antitrust problems.”

While Qualcomm agreed to fully cooperate with the investigation, some senior executives appealed to the Obama administration, pressing the White House to raise the issue with China’s senior leaders, according to a former administration official.

Qualcomm’s troubles went beyond China. The company was also under scrutiny by antitrust regulators in the European Union and South Korea, as well as by the United States Federal Trade Commission.

China didn’t back down. The head of the N.D.R.C. branded Qualcomm a monopoly.

In February 2015, after a 15-month-long investigation, Qualcomm settled allegations in China that it had charged unfairly high prices for its chips and patents. The company agreed to pay the $975 million fine — about 8 percent of its annual revenue in China — and to lower the prices for chips sold in the country.

“We are pleased that the resolution has removed the uncertainty surrounding our business in China, and we will now focus our full attention and resources on supporting our customers and partners in China,” said Steve Mollenkopf, the company’s chief executive, said at the time.

Qualcomm then went into business with the Chinese government.

There was a $150 million investment fund to help Chinese start-ups; new research and design facilities set up with Chinese companies such as Huawei and Tencent; and a partnership with a Beijing-based company called Thundersoft to develop drones, virtual reality goggles and internet-connected devices.

Qualcomm is also helping the Chinese government develop supercomputers, a technology the United States government has discouraged American companies from supporting overseas. In May, Qualcomm agreed to form a joint venture with other state-backed firms to design and sell mass-market smartphone chips. And to help make Chinese chip manufacturing more competitive, Qualcomm has pledged to shift more of its high-end production — long done by outside contractors in Taiwan and South Korea — to China.

“This is what China does better than anyone else,” said Robert D. Atkinson, president of the Information Technology and Innovation Foundation, a think tank focused on technology policy that has conducted studies detailing the Chinese government’s pressure on technology companies.

“They have a large carrot and a large stick,” he said. “And they have a market no C.E.O. can walk away from.”

Qualcomm’s biggest new venture is taking shape in southwest China’s Guizhou Province. Determined to leap into advanced technology, China has designated a large parcel of land in the provincial capital of Guiyang as the home of a new industrial park for supercomputing, data centers and cloud computing. The country’s large state-run telecom operators and its internet behemoths, including Alibaba and Tencent, are moving in, to build massive server farms. The region offers lower energy costs and abundant supplies of water, necessary to cool server farms.

A year ago, Qualcomm set up a joint venture with the Guizhou government and pledged to invest about $140 million for a minority stake in the business, situated in a development zone that has also attracted the interest of Microsoft and Dell. Qualcomm says it received American government approval for the deal.

The new Qualcomm joint venture, Huaxintong Semiconductor, broke ground on the site in 2016, and now operates in a 46,000-square-foot design and engineering center. A major test of the partnership will come when the joint venture’s first server chips are released — helping Qualcomm and the Chinese government stake out new ground. The Chinese government will control the chips and reap most of the profits.

In late March, Qualcomm’s president, Derek K. Aberle, flew to Guizhou to meet a powerful local government leader, Chen Miner, a confidant of the Chinese president. Seated in a government hall, before an enormous landscape painting, Mr. Aberle pledged to “continually cooperate” with the Chinese government.

Source: Tech CNBC
How Qualcomm is betting heavily on China's emergence as a tech superpower

Comments are closed.