After Monday's announcement that U.S. chipmaker Qualcomm will pay a historic fine of $1 billion to Chinese authorities after a 14-month investigation comes to a close, the head of China's National Development and Reform Commission (NDRC) reassured other major international business players that they are not next in line.
Xu Kunlin, who was promoted into the role of directing China's pricing body at the end of last year, told reporters that the technology company "will be fined several times the total amount the NDRC fined last year."
Xu's reassurance arrives at a time when overseas technology companies continue to grapple with Beijing over new regulations that govern China's banking sector, as major brands that include Qualcomm are concerned that they will eventually be ousted from an increasingly self-reliant economy.
This week's ruling may provide an indication of the magnitude of the power that Beijing is wielding, as the executives of the Californian tech giant were undoubtedly cognizant of the $26.5 billion that their company reaped in China over the last fiscal year--that is, 50 percent of Qualcomm's total global revenue.
Moreover, such resounding success has given Qualcomm a solid reason for outlining plans to expand further into the Asian giant's marketplace.
Even though the fine is the largest ever paid by a company in China, the chipmaker will be gad to see the back of the NDRC probe, as it fueled disputes with existing Chinese licensees and led to delays in the securing of new licenses.
Although its business model will remain unaltered, Qualcomm will undertake a revision of its licensing practices to comply with China's anti-trust regulators.