China has initiated two significant probes into the U.S. semiconductor industry as diplomatic talks between the two nations are scheduled to take place in Spain this week. The Ministry of Commerce in China has announced an anti-dumping investigation specifically aimed at certain analog integrated circuit (IC) chips imported from the U.S. This probe will focus on commodity interface IC chips and gate driver IC chips, which are predominantly manufactured by notable American firms such as Texas Instruments and ON Semiconductor.
In addition to the anti-dumping investigation, China’s commerce ministry is also launching an anti-discrimination inquiry into U.S. measures that target China’s semiconductor sector. A spokesperson for the ministry indicated that the restrictions imposed by the U.S., including export curbs and tariffs, represent an attempt to stifle the advancement of China’s high-tech industries, particularly in fields like advanced computer chips and artificial intelligence.
These announcements come in the wake of the U.S. government adding 23 Chinese companies to an “entity list,” which imposes restrictions due to concerns about national security and foreign policy. Among the companies listed are two accused of acquiring chipmaking equipment for the major Chinese manufacturer SMIC.
The talks in Madrid are set to be led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, scheduled to occur from Sunday through Wednesday. These discussions represent the latest effort to alleviate ongoing trade tensions and potentially delay the imposition of higher tariffs on each other’s goods.
Prior engagements between U.S. and Chinese officials included meetings in Geneva, London, and Stockholm earlier this year. Throughout these discussions, the two governments have managed to agree on several temporary halts regarding rising reciprocal tariffs, effectively avoiding an all-out trade war. Bessent described the previous negotiations in Stockholm as “very fulsome,” emphasizing the need to “de-risk” critical industries such as rare earth materials, semiconductors, and medicines.
Both U.S. President Donald Trump and his successor, President Joe Biden, have imposed restrictions on China’s access to advanced semiconductors, particularly targeting the sale of chipmaking equipment. While the U.S. government cites national security as the rationale behind these measures, China counters that these actions are part of a broader strategy to curb its economic growth. The ongoing dialogues in Spain may offer a platform for both nations to address these contentious issues and seek pathways toward cooperation or at least a reduction in hostilities.
