(Bloomberg) -- China has begun an investigation into a months-old Qualcomm Inc. acquisition, taking aim at yet another US technology giant before a pivotal meeting of the leaders of the world’s two largest economies.

The  State Administration for Market Regulation has opened an antitrust investigation into the takeover of connected-vehicle technology provider Autotalks, a deal announced in June. In a brief statement, the watchdog said it would look into potential violations of the country’s anti-monopoly law in relation to the transaction. Qualcomm’s shares fell more than 4% in pre-market trading in New York.

Most Read from Bloomberg

The Long Comeback of the Erie Canal

Mapping a Way Out of the US Housing Affordability Crisis

The Secret to Vancouver’s Public Transit Ridership Recovery

London’s ‘Superloop’ Buses Seek to Speed Suburban Commutes

Billionaire Caruso Says He No Longer Builds in LA Due to Prices

Beijing is targeting Qualcomm, whose technology is key to smartphones and networking, in the run-up to talks between US President Donald Trump and his Chinese counterpart, Xi Jinping. Both countries are maneuvering for leverage ahead of the expiration of a US-China trade truce — even at the risk of escalating tensions.

China this week unveiled sweeping new curbs on its exports of rare earths and other critical materials, echoing moves made in April in response to Trump’s so-called “Liberation Day” tariffs. That came as Beijing continued to eschew purchases of American soybeans, exacerbating an economic squeeze on farming communities that largely voted for Trump in 2024.

Apart from Qualcomm, Chinese regulators also announced an investigation into Nvidia Corp.’s 2020 acquisition of networking gear maker Mellanox. That probe was unveiled just as Beijing and Washington officials sparred over trade and other issues during wide-ranging negotiations in Madrid about a month ago.

Friday’s announcement also drove shares in Alphawave IP Group Plc about 6.5% lower in London. Qualcomm is in the process of buying the company in a $2.4 billion deal struck earlier this year.

(Updates with Xi-Trump meeting from the second paragraph.)

Most Read from Bloomberg Businessweek

‘I Believe It’s a Bubble’: What Some Smart People Are Saying About AI

How Din Tai Fung Became America’s Top-Earning Restaurant Chain

A Shipwreck Killed 41 Crew and 5,900 Cattle. The Brutal Business Behind It Goes On

Drilling Frenzy Arrives in Canada’s Pristine Wilderness

The Political Transformation of California’s Billionaire Mall King

©2025 Bloomberg L.P.