Chip maker Qualcomm (QCOM) is one of a select group of global firms set to meet with President Xi this week as China continues its push to secure overseas technology investment.
Cars and Chips
According to a report in Reuters, QCOM, whose shares were flat in pre-market trading, will meet Xi tomorrow, March 28, alongside the global heads of German automakers BMW and Mercedes.
There is no indication what the meeting will be about, but the combination of a chip maker and auto firms could mean electric vehicles, where China is in hot competition with the likes of U.S. maker Tesla (TSLA), are on the agenda. President Trump’s recent imposition of a 25% tax on car import tariffs may also figure. The companies, said Reuters, did not comment.
The meeting follows last week’s China Development Forum, which traditionally sets out Chinese economic development plans and aims for the months ahead and tries to secure cooperation and investment from foreign enterprises to help it achieve its goals.
Fellow chip maker Broadcom (AVGO) was reportedly one of the U.S. firms which attended the event, though the number of Stars and Stripes companies was said to be lower than in previous years. That is largely due to heightened economic and political tensions between the U.S. and China since the return of President Trump to power in January.
Ailing Domestic Economy
It is partly because of the tariff hikes imposed on China by the U.S. and the shift in overseas manufacturing facilities to other Asian nations such as Vietnam since the Covid pandemic that China is looking for a pick-up in overseas investment.
China also wants to boost what it sees as an ailing domestic economy – despite projections of 5% growth this year – hit by a property crisis and lower consumer confidence. At the forum, Chinese Premier Li Qiang urged countries to open their markets and fight “rising instability and uncertainty.” It may be hoping to use Trump’s aggressive economic policies to curry favour with global firms looking to expand in existing or new markets.
Is QCOM a Good Stock to Buy Now?
On TipRanks, QCOM has a Moderate Buy consensus based on 11 Buy, 7 Hold and 1 Sell rating. Its highest price target is $250. QCOM stock’s consensus price target is $203.12 implying an 28.24% upside.
