In a significant development within the ongoing trade tensions between the United States and China, the Chinese government announced an anti-dumping investigation into imported American analogue integrated circuit (IC) chips. The Ministry of Commerce revealed this decision on its official website, citing a request from the Jiangsu provincial semiconductor association, which represents domestic industries adversely affected by the influx of these imports.
This probe comes at a crucial time, just one day before a planned meeting in Madrid, Spain, between trade delegations from both nations. The timing raises questions about the potential impact of the investigation on diplomatic negotiations and trade relations.
According to the Ministry’s notice, the preliminary evidence provided by the applicant highlighted a notable increase in the import volume of U.S. products under scrutiny, which rose by 37 percent from 2022 to 2024. Conversely, the import price of these products fell dramatically, decreasing by 52 percent during the same period. This substantial drop in price has reportedly undermined the sales prices of domestic products in China, leading to significant harm to local industries.
The investigation will specifically focus on commodity interface IC chips and gate drive IC chips, scrutinizing the detrimental effects on China’s semiconductor industry over the designated timeframe of 2022 to 2024. The implications of this probe could further complicate the existing trade dynamics between China and the U.S. and may escalate tensions at a time when both countries are attempting to navigate economic challenges and engage in dialogue.
Given the pivotal role that semiconductors play in global supply chains, the outcome of this investigation could have far-reaching consequences for both domestic manufacturers in China and American exporters. The situation warrants close attention as it unfolds against the backdrop of an already strained trade relationship between the two economic powerhouses.
