China Probes US Semiconductors Ahead of Trade Talks
China has taken a bold step by launching probes into the U.S. semiconductor sector, coinciding with important trade talks happening in Madrid. This move, announced by China’s Ministry of Commerce, includes an anti-dumping investigation into certain analog integrated circuit (IC) chips imported from the United States. The targeted chips are commonly produced by major U.S. companies, such as Texas Instruments and ON Semiconductor.
In addition to the anti-dumping probe, China is also investigating U.S. measures that are seen as discriminatory against its semiconductor sector. This comes just days after the U.S. government added 23 Chinese companies to an “entity list” due to alleged actions that threaten U.S. national security and foreign policy interests. Among these companies, two are accused of acquiring chip-making equipment for the prominent Chinese chipmaker SMIC.
The backdrop of these investigations is the upcoming meetings between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Madrid. These discussions aim to address ongoing trade tensions and explore ways to avoid escalating tariffs on each other's goods. Previous talks in Geneva, London, and Stockholm have led to temporary pauses on reciprocal tariffs, indicating a mutual desire to prevent a full-blown trade war.
During the last round of negotiations, Bessent described the talks as “very fulsome,” emphasizing the need to “de-risk” certain strategic industries. He highlighted areas such as rare earths, semiconductors, and medicines where both nations could work together to achieve a balanced relationship. The U.S. has imposed restrictions on China’s access to advanced semiconductor technology, citing national security concerns. However, China argues that these actions are part of a broader U.S. strategy to hinder its economic growth.
As the global tech landscape continues to evolve, the outcomes of these negotiations will be crucial. Both China and the U.S. are navigating a complex web of economic interdependencies and competition in high-tech industries. The stakes are high, not only for the two nations but also for the global economy, which relies heavily on the stability and cooperation between these technological giants.
