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By Selena Li HONG KONG (Reuters) -U.S. semiconductor manufacturer Qualcomm admitted that it had not informed Chinese authorities when it completed its acquisition of Israel's Autotalks in June, China's market regulator said on Sunday. The disclosure was made two days after China launched an antitrust investigation into Qualcomm, examining whether the U.S. firm violated China's antitrust law by not declaring some details of its acquisition of the Israeli chip designer. Qualcomm did not immediately respond to Reuters' request for comment.  China's State Administration for Market Regulation (SAMR) said it informed Qualcomm in March 2024 that the deal requires approval by the regulator, and the U.S. firm in the same month notified SAMR it wouldn't pursue further. However, Qualcomm in June this year completed the deal without informing the authority, the regulator said, adding Qualcomm "acknowledged above facts", based on which Beijing launched the antitrust probe. Qualcomm's shares fell more than 5% on Friday after U.S. President Donald Trump threatened to hike tariffs against China and cancel a planned meeting with President Xi Jinping. (Reporting by Selena Li)

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TAIPEI (Reuters) -No significant impact is expected on Taiwan's semiconductor industry from China's new curbs on rare earths as they differ from the metals needed for the chip sector, the island's economy ministry said on Sunday. China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for chip users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. Taiwan's economy ministry said in a statement about China's new rules that the rare-earth elements covered by the expanded ban differ from the rare-earth items required in Taiwan's semiconductor processes, so no significant impact on chip manufacturing is expected at this time. Domestically needed products or derivatives containing rare earths are mainly sourced from Europe, the United States, and Japan, it added. Taiwan is home to the world's largest contract chipmaker TSMC, the producer of the vast majority of advanced chips that are a key component of artificial intelligence applications. However, the ministry added that China's latest expansion of controls could affect global supply chains for products such as electric vehicles and drones, adding the impact will need to be closely watched. Earlier on Sunday, China defended its curbs on exports of rare earth elements and equipment, saying they were motivated by concern about these metals' military applications at a time of "frequent military conflict". (Reporting by Ben Blanchard; Editing by Raju Gopalakrishnan)

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(Changes wording in headline) TAIPEI (Reuters) -Most rare earth materials used in Taiwan are supplied by Europe, the United States and Japan, but the impact of China's new curbs on the semiconductor industry still needs to be assessed, the island's economy ministry said on Sunday. China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for chip users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. Taiwan's economy ministry said in a statement about China's new rules said that most rare-earth-related materials needed domestically are supplied by Europe, the United States and Japan. "The impact on the operation of the semiconductor industry still requires further stocktaking and assessment. We will continue to monitor changes in raw material costs and any indirect effects that supply-chain adjustments may bring," it said. Taiwan is home to the world's largest contract chipmaker TSMC, the producer of the vast majority of advanced chips that are a key component of artificial intelligence applications. Earlier on Sunday, China defended its curbs on exports of rare earth elements and equipment, saying they were motivated by concern about these metals' military applications at a time of "frequent military conflict". (Reporting by Ben Blanchard; Editing by Raju Gopalakrishnan)

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By Eduardo Baptista and Selena Li BEIJING/HONG KONG (Reuters) -China called President Donald Trump's latest U.S. tariffs on Chinese goods hypocritical on Sunday and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products. Trump on Friday responded to Beijing's most recent export controls by imposing additional tariffs of 100% on China's U.S.-bound exports, along with new export controls on critical software by November 1. The revived trade tensions have rattled Wall Street, sending Big Tech shares tumbling, worried foreign companies dependent on China's production of processed rare earths and rare earth magnets, and could derail a summit between Trump and Chinese President Xi Jinping tentatively scheduled for later this month.  RESPONDING TO TRUMP The Chinese commerce ministry's statement on Sunday was Beijing's first direct response to Trump's lengthy Truth Social post on Friday, where he accused Beijing of suddenly raising trade tensions after an uneasy truce was reached six months ago between the world's two largest economies, allowing them to trade goods without sky-high tariff rates. "Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one," Trump said. The commerce ministry said in an equally lengthy statement that its export controls on rare-earth elements followed a series of U.S. measures since bilateral trade talks in Madrid last month. Beijing cited the addition of Chinese companies to a U.S. trade blacklist and Washington's imposition of port fees on China-linked ships as examples. "The U.S. actions have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them," the ministry said. Beijing stopped short of explicitly connecting these U.S. actions to its export curbs on rare-earth elements, saying its curbs were motivated by concern about these materials' military applications at a time of "frequent military conflicts". It also held off on announcing a corresponding levy on China-bound U.S. imports, unlike earlier in the year, when both superpowers progressively ratcheted up tariffs on each other until the U.S. rate was 145% while China's was 125%. "Willful threats of high tariffs are not the right way to get along with China. China’s position on the trade war is consistent: we do not want it, but we are not afraid of it," the commerce ministry said, adding China would take corresponding measures if the U.S. did not correct its course. 'PATH FOR NEGOTIATIONS' China's decision not to immediately respond in kind to Trump's opening salvo in this latest round of trade tensions could leave the door open for both countries to negotiate a de-escalation, analysts said. "By clarifying the rationale behind its retaliatory measures, Beijing is also outlining a potential path forward for negotiations. The ball is now in the U.S. court," said Alfredo Montufar-Helu, managing director at strategic advisory firm GreenPoint. But Hutong Research said in a note on Saturday that if Beijing chooses not to respond to Trump's 100% tariff hike, it may signal that Beijing no longer prioritises a long-term deal with him, reflecting diminished confidence in his ability to restrain hawks or stick to commitments. "Key watchpoints now: Whether Beijing moves to freeze or complicate the TikTok sale, given its political symbolism. Proceeding with the sale under current conditions would be seen as a major concession," the research firm said. CHINA SAYS EXPORT CONTROLS ARE NOT EXPORT BANS The commerce ministry also countered Trump's narrative that China was using its dominance in processed rare earths and rare earth magnets to attack all countries, not just the U.S. "We have been contacted by other Countries who are extremely angry at this great trade hostility, which came out of nowhere," Trump said on Friday on Truth Social. China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Exports of 12 of them are restricted after China's commerce ministry on Thursday added five – holmium, erbium, thulium, europium and ytterbium – along with related materials. The commerce ministry statement on Sunday sought to reassure foreign companies spooked by the latest export curbs, promising to promote compliant trade by granting general licenses and license exemptions. "China's export controls are not export bans," it said. "Any export applications for civilian use that comply with regulations will be approved, and relevant enterprises need not worry." (Reporting by Eduardo Baptista in Beijing and Selena Li in Hong Kong; Editing by William Mallard)

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