China’s Ministry of Commerce has launched an anti-discrimination investigation into U.S. trade policies regarding semiconductor chips, alongside a separate probe into suspected dumping of certain U.S. analog chips used in devices like hearing aids, Wi-Fi routers, and temperature sensors. These actions come just a day before new trade talks between China and the United States are scheduled to take place in Madrid from September 14 to 17, led by Chinese Vice Premier He Lifeng.
The investigations focus on whether Washington has unfairly discriminated against Chinese companies through restrictions and bans related to chip trade, including recent measures such as export controls and trade discrimination investigations. China alleges that U.S. protectionist tactics aim to hamper its advancements in high-tech industries such as advanced computing and artificial intelligence.
Amid tensions, Madrid talks are crucial. China plans to discuss U.S. tariffs, export controls, and TikTok, which may face a ban unless it moves U.S. operations. China criticises Washington’s “erroneous practices” and urges it to stop unduly suppressing Chinese firms. It warns of necessary measures to defend its interests.
Recently, the U.S. restricted 32 entities, including two Chinese firms involved in U.S. chip equipment for SMIC, highlighting ongoing trade tensions. Despite challenges, both countries aim to maintain a fragile trade truce, extending tariffs until November 10 and ensuring Chinese rare earth minerals flow into the U.S. This year,
The Madrid talks are the fourth major meeting. Previous discussions in Geneva, London, and Stockholm resulted in tariff extensions and eased tensions. TikTok’s future negotiations will be key, with U.S. lawmakers concerned about data security.
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China affirms its commitment to data privacy and denies unlawful data transfers. It vows to protect its interests if the U.S. continues to undermine them. The Madrid talks will shape future China-U.S. trade relations, balancing rivalry and cooperation.
