China US chip dumping discrimination trade talks China Investigates US Chips for Dumping and Discrimination Ahead of Madrid Trade Talks
China Launches Dual Probes into US Chip Policies
On September 13, China’s Ministry of Commerce announced two separate investigations targeting US chip-related trade practices. The first probe focuses on whether Washington has discriminated against Chinese companies through restrictions and export controls. The second investigation centers on alleged dumping of US analog chips, including those used in Wi-Fi routers, temperature sensors, and hearing aids.
Beijing Accuses US of Protectionism
In its official statement, the ministry condemned US restrictions as “protectionist practices” designed to suppress China’s high-tech growth in areas like artificial intelligence and advanced computing chips. Chinese officials argue that Washington’s policies have unfairly targeted local firms, curbing their international competitiveness.
Trade Talks Begin in Madrid
The investigations come just as Chinese Vice Premier He Lifeng leads a delegation to Madrid for September 14–17 trade talks with US representatives. The discussions will cover tariffs, export control policies, and even the controversial future of TikTok in the United States.
US Tightens Restrictions Before Talks
A day earlier, the US Commerce Department added 32 new entities to its restricted trade list, including 23 Chinese companies. Among them were firms accused of acquiring sensitive chipmaking equipment for SMIC, China’s largest semiconductor manufacturer. This move added further strain ahead of negotiations.
TikTok on the Negotiation Table
TikTok’s fate is expected to dominate part of the talks. The app faces a potential US ban unless ByteDance divests its American operations. President Donald Trump has extended the deadline until September 17, but lawmakers remain concerned about data security and potential Chinese government access to user data.
China’s Response to Sanctions
China strongly rejected Washington’s actions, urging the US to “immediately correct its erroneous practices.” Beijing has warned that it will take “necessary measures” to defend the rights of its companies if sanctions and restrictions continue. State media emphasized that China does not require firms to hand over overseas data, dismissing US accusations.
Fourth Major US-China Dialogue This Year
The Madrid round marks the fourth major in-person meeting between the two countries in 2025, following earlier talks in Geneva, London, and Stockholm. In July, both sides agreed to extend a 90-day tariff truce, which President Trump extended until November 10. This fragile truce now faces renewed pressure from the latest disputes.
Growing Tensions in Semiconductor Industry
The semiconductor sector has become the core battleground of US-China rivalry. With chips powering everything from smartphones to AI technologies, both countries view control of this industry as critical for national security and economic dominance. China’s latest move signals it will no longer tolerate what it sees as unilateral US pressure.
Impact on Global Tech Supply Chains
Any escalation in the US-China chip conflict could have ripple effects across global supply chains. Countries dependent on semiconductors for consumer electronics, automobiles, and 5G infrastructure may face shortages and higher costs if restrictions continue to tighten.
Analysts Warn of Prolonged Trade Conflict
Experts believe that the dumping probe is not just about US companies but a signal of China’s broader strategy to counter Washington’s export bans. Some analysts warn that the Madrid talks may not deliver concrete solutions, and tensions may carry into 2026.
European Interest in the Talks
Since the dialogue is hosted in Spain, European leaders are closely monitoring developments. The EU, which has its own chip strategy, could benefit if US-China conflicts disrupt supply chains, potentially positioning Europe as an alternative semiconductor hub.
Technology and National Security Concerns
For Washington, restricting Chinese access to advanced chip technology is not only about economics but also national security. US officials argue that AI and high-performance chips could strengthen China’s military capabilities, while China views these arguments as a cover for unfair trade practices.
Future Outlook of US-China Trade Relations
The Madrid trade talks will determine whether both nations can sustain the fragile tariff truce. If the disputes over dumping, discrimination, and TikTok remain unresolved, global markets could face turbulence, especially in sectors reliant on semiconductor innovation.
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