China’s Ministry of Commerce has launched an anti-discrimination investigation into U.S. trade policies concerning semiconductor chips and a related inquiry into suspected dumping practices. This announcement comes just ahead of the upcoming U.S.-China trade talks scheduled to take place in Madrid from September 14-17.
The first investigation aims to determine whether the United States has enacted policies that unfairly discriminate against Chinese companies in the chip trade sector. This scrutiny follows a series of restrictions the U.S. has implemented against China over the past few years, including export controls and trade discrimination investigations. The Ministry characterized these actions as “protectionist” practices aimed at curtailing China’s development in high-tech industries like advanced computing chips and artificial intelligence.
The second investigation focuses on allegations of dumping concerning certain U.S. analog chips used in various devices such as hearing aids, Wi-Fi routers, and temperature sensors. The ministry’s statement emphasized concerns over the U.S.’s attempts to undermine China’s technological progress through these restrictive measures.
As the talks in Madrid draw near, the Chinese delegation, led by Vice Premier He Lifeng, is expected to address a range of economic and trade issues, including U.S. tariffs, the alleged “abuse” of export controls, and the future of TikTok. In a pointed inquiry, the Ministry raised critical questions regarding the U.S.’s intentions behind recent sanctions on Chinese firms, urging the U.S. to rectify these practices and halt what they describe as unwarranted suppression of Chinese businesses.
In a related move, the U.S. added 32 entities to its restricted trade list, 23 of which are based in China, including companies linked to acquiring U.S. chipmaking technology for China’s top chipmaker, SMIC. This action illustrates the ongoing tension and competitive dynamics between the two nations regarding technology and trade.
The Madrid talks will mark the fourth significant in-person meeting this year as both countries strive to uphold a fragile trade truce, which has seen a reduction in retaliatory tariffs and the resumption of imports of Chinese rare earth minerals to the U.S. Following discussions earlier this year in Geneva and London, both sides reached an agreement in late July to extend a tariff pause for another 90 days, which President Trump has recently approved to last until November 10.
TikTok is poised to be a key topic in the upcoming discussions, especially as the deadline for a potential ban in the U.S. approaches. Lawmakers have expressed concerns that the app’s U.S. user data could be accessible to the Chinese government if the company does not divest its U.S. assets by the specified deadline of September 17.
Amidst these tensions, Chinese state media, including the People’s Daily, has stressed the importance of data privacy and security, reassuring that the Chinese government does not require companies to disclose data collected overseas. Moreover, should the U.S. continue to impair the legitimate interests of Chinese enterprises, China has vowed to take appropriate measures to protect its national interests and safeguard the rights of its companies in the global marketplace.
