And that's where the problem lies for Qualcomm, because its licensing business represents about 30 percent of the company's total revenue.
Analysts say the uncertainty about what's going on in China is having an impact on Qualcomm's stock price. Qualcomm shares have gained less than 4 percent in 2014, and have lost more than 2 percent in the past six months. But not all analysts are worried about Qualcomm's woes in China.
CLSA's Srini Pajjuri has an outperform rating on Qualcomm shares and a $90 price target. In a recent note, Pajjuri wrote "even if we assume that China royalty revenue goes to zero, the stock is trading at 17x, suggesting that a near worst case scenario is priced in." He adds that top tier Chinese phone manufacturers like Huawei, Lenovo, Xiaomi, Coolpad and ZTE are "complying."
Read MoreCheap, easy, portable: The future of cancer diagnosis?
However, Qualcomm's problems in China don't stop with its licensing and royalty woes. Qualcomm recently also disclosed that the Chinese government is investigating the company under the country's anti-monopoly law. RBC's Mark Sue says it could be another 12 months before there is clarity on that investigation and ongoing dispute.
The bottom line for Qualcomm investors: China represents close to 20 percent of Qualcomm's revenue and the company for years has counted on China for future growth.