00:00How concerning is it that China is now opening an investigation, according to CCTV, into Qualcomm?
00:06Yeah, so as you say, according to Chinese state media, this is a probe and investigation into Qualcomm
00:12into whether or not they violated the anti-monopoly law in China related to that takeover of AutoTalks,
00:19which happened back in June, in the summer, of course, of this year as well.
00:22The context in terms of the market for Qualcomm, 45% of that company's revenues come from China and Hong Kong.
00:29You compare that to about 25% for the United States.
00:33So that is the size and scope of the Chinese market and the importance of the Chinese market for Qualcomm,
00:37which, of course, supplies the chips that go into smartphones, iPhones and Samsung phones as well.
00:42And that is the biggest slice of revenue for them.
00:44They also supply into autos and the Internet of Things space as well.
00:49But it should be put in that context, of course, Vonnie, in terms of the potential meeting between the two presidents.
00:55This is a China that's ratcheting it up in terms of the pressure points on the US and trying to give themselves more leverage, frankly, in those conversations.
01:02And so you pair that with the reporting from the Financial Times that there are now these inspectors at major ports in the US
01:08looking at shipments of NVIDIA chips and AMD chips into the Chinese market, putting pressure, again, on those domestic firms in China.
01:15They've jaw-boated them in terms of trying to pressure them to walk away from purchases of US GPUs and try to get them to buy more chips from Huawei.
01:24Now it seems they're putting those inspectors in place at ports to really ramp up the pressure on those domestic firms.
01:28At a time, we're also hearing and reports that they're adding fees to docking of US ships into US ports as well.
01:35So all of these measures, I think, should be put in that context.
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