Dr. Fei Deng Commented on NDRC’s Investigation of Qualcomm in China Daily
Feb 26, 2014
China’ anti-monopoly regulatory agency in charge of price-related conduct, National Development and Reform Commission (NDRC), began an investigation of U.S. chipmaker Qualcomm for alleged abuse of market dominance and discriminatory pricing in November 2013. In a China Daily USA article on February 11, 2014, Dr. Fei Deng discussed the implications of NDRC’s investigation of Qualcomm on the company itself and on other international companies doing business in China.
Dr. Deng explained that if Qualcomm is found liable, it faces "a heavy fine from the NDRC." Under China’s anti-monopoly law, the NDRC can impose fines between 1 and 10 percent of a company's revenues for the previous year. Qualcomm reported $24.87 billion in revenue in fiscal year 2013, with $12.3 billion, or 49%, coming from its operations in China.
In addition, Dr. Deng commented that "the wide media coverage, including the very recent CCTV coverage, might have created a negative presumption about Qualcomm." She added that "it is hard to say what the effect is over the long run, but this investigation has created another gloomy cloud over the international corporations doing business in China."
Read the full article from China Daily USA, here.