China’s Economic Woes Hit US Corporate Giants

Chip giant Qualcomm is the latest U.S. company to announce layoffs as China’s economic struggles impact the global market and push U.S. business elsewhere.

A Qualcomm sign outside of one of the company's many buildings in San Diego on Sept. 17, 2020. Mike Blake/Reuters

With a sluggish economy and weak demand and consumption taking a toll on China, U.S. corporate behemoths are feeling the pinch. They’re being forced to reassess their investment and expansion plans in the world’s second-largest market.

U.S. mobile chip developer Qualcomm announced in a statement on Sept. 20 that it’s laying off workers in China because of “continued uncertainty in the macroeconomic and demand environment,” indicating a longer-than-expected industry downturn and slow recovery.