Qualcomm’s No Good, Very Bad Streak

The spat between the U.S. and China is adding to the chipmaker’s recent challenges

Qualcomm Inc. stepped into the escalating spat between the U.S. and China. It is now grappling with the fallout.

The chip maker’s chances of closing a critical acquisition recently dimmed after China signaled it could block the deal. It is in danger of losing a significant customer, ZTE Corp., after the U.S. banned American companies from selling components to the Chinese handset maker. Qualcomm is laying off 4.4% of its workforce in an effort boost profits through cost-cutting. And it has to convince shareholders it can...