China Launches Investigation Of Discrimination And Dumping Of US Chips Ahead Of Trading Talks

Illustration of US and Chinese Chip competition and trading (photo: dock built in)

JAKARTA - China's Ministry of Trade on Saturday, September 13 began an anti-discrimination investigation into US chip trading policies. They also conducted a separate investigation into alleged US analog chip import dumping used in devices such as hearing aids, Wi-Fi routers, and temperature sensors. The investigation comes a day before a new round of US-China trading talks in Spain.

The first investigation will examine whether Washington has discriminated against Chinese companies in chip trading policies. The second investigation will examine allegations of dumping imports of US analog chips.

China's Ministry of Commerce stated that the US has imposed a series of restrictions on China regarding chips in recent years, including investigations into trade discrimination and export controls.

This "protectionist" practice is suspected of discriminating against China and aims to limit and suppress the development of China's high-tech industry, such as advanced computing chips and artificial intelligence.

Delegation led by Chinese Deputy Prime Minister He Lifeng is scheduled to start a new round of dialogue with the US on September 14-17 in Madrid. China's Ministry of Trade stated that both sides will discuss economic and trade issues, including US tariffs, export control "usage", and TikTok. In a separate statement on Saturday, the ministry questioned Washington's policies.

"What is the US intention of imposing sanctions on Chinese companies at this time?", the ministry said.

"China urges the US to immediately correct their wrong practices and stop baseless oppression of Chinese companies. China will take the necessary steps to firmly protect the legitimate rights and interests of Chinese companies."

On Friday, the US added 32 entities, 23 of which are in China, to the US Department of Commerce's limited trade list. These include two Chinese companies accused of acquiring US chip manufacturing equipment for SMIC, China's largest chipmaker.

US-China talks in Spain will be the fourth major meeting in person this year, as the two countries seek to maintain a trade ceasefire that reduces retaliatory rates and restores China's rare earth mineral flow to the US.

Following a meeting in Geneva and London, the two sides at the end of July in Stockholm agreed to extend the tariff break from 90 days to November 10, which was approved by President Donald Trump on August 12.

The short video app ByteDance, TikTok, which faces a potential ban in the US unless switching to US holdings, will also become an agenda in talks in Spain. Trump has extended the deadline for TikTok to release its assets in the US until September 17. US lawmakers say that TikTok user data in the US could fall into the hands of the Chinese government.

"The Chinese government is very concerned about data privacy and security and has never asked companies or individuals to collect or provide data abroad for the Chinese government by breaking local laws," China's official newspaper, People's Daily, wrote on Saturday.

"If the US continues to insist on harming the legitimate interests of Chinese companies, China will take the necessary steps to protect the national interests and rights of Chinese companies," the newspaper wrote.