China Ministry of Commerce announced on Saturday it has launched two probes against the US’s semiconductor sector – an anti-discrimination investigation into the US trade policy over chips, and a separate investigation into dumping – one day ahead of talks between China and the US in Madrid, Spain.
While the probe against discrimination will examine whether Washington discriminated against Chinese companies in its chip-trade policies, the second would look into suspected dumping of imports of certain US analog chips that are used in devices like hearing aids and temperature sensors. It will target some commodity interface IC chips and gate driver IC chips, which are commonly made by US companies such as Texas Instruments and ON Semiconductor.
US measures such as export curbs and tariffs “constitute the containment and suppression of China's development of high-tech industries” such as advanced computer chips and artificial intelligence, a Chinese commerce ministry spokesperson said.
Such "protectionist" practices are suspected of discriminating against China and are intended to curb and suppress China's development of high-tech industries such as advanced computing chips and artificial intelligence, it added.
"What is the U.S.'s intention in imposing sanctions on Chinese companies at this time?" the ministry said.
"China urges the U.S. to immediately correct its erroneous practices and cease its unwarranted suppression of Chinese companies. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies."
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US Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng in Madrid between Sunday and Wednesday, He's office said, where the two sides will talk about trade, national security and the ownership of social media platform TikTok.
The announcements of the probes follow the US on Friday adding 23 Chinese companies to an “entity list” of businesses that will face restrictions for allegedly acting against US national security and foreign policy interests. The list includes two Chinese companies accused of acquiring chipmaking equipment for major Chinese chipmaker SMIC.
The meetings between Bessent and He in Madrid will be the latest in a series of negotiations aimed at reducing trade tensions and postponing the enactment of higher tariffs on each other's goods.
US and Chinese counterparts previously held discussions in Geneva in May, London in June and Stockholm in July. The two governments have agreed to several 90-day pauses on a series of increasing reciprocal tariffs, staving off an all-out trade war.
Bessent described the talks during the last round in Stockholm as "very fulsome." “We just need to de-risk with certain, strategic industries, whether it's the rare earths, semiconductors, medicines, and we talked about what we could do together to get into balance within the relationship,” Bessent said at the time.
US President Donald Trump and former President Joe Biden placed curbs on China's access to advanced semiconductors including restrictions on the sale of chipmaking equipment to the country. While Washington cites national security concerns, China argues the curbs are part of a US strategy to contain its growth.
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