Qualcomm has been told that if it helps Chinese companies become so competitive that they can give the company a good kicking, then the watchdogs will be sent back to their cages.
Lu Wei, the head of China’s State Internet Information Office, was speaking at a panel http://www.weforum.org/ during a World Economic Forum event in Tianjin, China, where Qualcomm’s executive chairman Paul Jacobs was also among the speakers.
Lu told Jacobs that Qualcomm made $24 billion in revenue during the company’s last fiscal year, with nearly half of it from China.
“This means China is a good place to make money… we should make money together. You should work alongside Chinese companies to make money.”
China’s National Reform and Development Commission has been investigating Qualcomm since last November, on industry complaints that the company has been overcharging Chinese clients to use its patents.
Qualcomm said the company had 70 Chinese vendors using its 4G LTE patents, and another 120 vendors for its 3G CDMA patents.
Jacobs replied that his company had been helping Chinese companies to deliver new products to the market. This includes working with over 90 Chinese companies to build devices.
“I feel like it has been a win-win between Qualcomm and Chinese companies, Chinese customers and I hope that continues far into the future,” Jacobs said.