China will launch an antitrust investigation against Intel – while these are rumors, but the shares have already fallen in price

The price of the Intel Corporation shares decreased by 1.15 % after the FINANCIAL Times on the possible launch of an antimonopoly investigation against the company from Chinese regulators. This can be another step in China in response to the administration of Donald Trump (Donald Trump) of increased duties on the import of goods from China.

The actions of the Chinese state administration for market regulation (SAMR) were a response to strengthening geopolitical friction between China and the USA. The new investigation can clearly be considered a response to the US decision to introduce a 10 percent tariff for the import of goods from China in addition to existing duties, which came into force on February 4.

A potential investigation against Intel is part of the general course for antitrust investigations regarding many large American technological companies. SAMR, in particular, resumed a previously frozen investigation regarding the dominance of the Google Android operating system, which affected many Chinese smartphone manufacturers such as Oppo and Xiaomi. The company also recently launched an investigation against NVIDIA, and today there have been reports of another antitrust investigation against Google.

The nature of the investigation against Intel is still vague, and the details depend on the further development of relations between the United States and China. The deadlines for the launch and scope of a possible investigation may be affected by the upcoming conversation between the head of China Xi Jinping) and President Trump.

The fall in the value of Intel shares reflects the concern of investors about the influence of the possible investigation of the Chinese regulator on the company’s activities on the Chinese market significant for semiconductor companies.