China starts probes targeting US semiconductor sector
The Ministry of Commerce kicked off an anti-discrimination investigation into US moves against the Chinese chip sector. (Photo credit: Reuters)
Source: Bloomberg
China launched two investigations targeting the US semiconductor sector ahead of planned talks between the two nations on trade and other issues.
The Ministry of Commerce said on Sept 13 that it has opened an anti-dumping probe relating to certain American-made analog IC chips, the sort of products sold by Texas Instruments and Analog Devices.
At the same time, the ministry kicked off an anti-discrimination investigation into US moves against the Chinese chip sector, according to a separate statement.
The probes come shortly after the US added 23 more
China-based companies to its entity list,
which imposes restrictions on businesses deemed to be “acting contrary to the national security or foreign policy interests of the US”.
China’s public rebuke of US trade measures sets up a tense opening for a multi-day meeting between top officials from both sides. US Treasury Secretary Scott Bessent is set for discussions with Chinese Vice-Premier He Lifeng in Madrid on trade, economic and national security issues.
The talks come after months of back and forth on trade negotiations and a pause of the Trump administration’s elevated tariffs on China while the two sides seek to work out a mutually agreeable deal.
Semiconductors have grown into a key ground of contestation, as the US has cut off China’s access to the most advanced artificial intelligence accelerators. Washington has used the licensing of some less-powerful Nvidia hardware as a bargaining chip – though Chinese officials have pushed back and expressed reservations about security risks.
China recently made its first use of a so-called anti-circumvention investigation that led to anti-dumping duties on US optical-fibre imports. That tool is expected to play a greater role in the future, according to state TV.
The analog chips that Beijing is now looking into help digital systems interface with the real world, handling tasks like wireless signal amplification and power and voltage regulation. They do not require cutting-edge chipmaking, but are essential in everything from smartphones to electric vehicles to medical imaging.
“The US has taken a series of prohibitions and restrictions against China in the field of integrated circuits over recent years, including 301 investigations and export control measures,” a commerce ministry spokesperson said.
“Those protectionist practices are suspected of discrimination against China and are a containment and suppression of China’s development of advanced computing chips and high-tech industries such as artificial intelligence.”
Mr Bessent and Mr He’s discussions will cover, among other issues, the status of ByteDance’s TikTok, a service that President Donald Trump has estimated could be worth as much as US$500 billion (S$642 billion) to the US. TikTok has a deadline to reach a deal to ensure it continues operations in the US, though such deadlines have been extended several times in 2025.
Efforts to combat money laundering will also be on the agenda, according to the US Treasury Department.
China said in January that it will investigate allegations the US dumps lower-end chips and unfairly subsidises its own chipmakers, marking one of Beijing’s strongest retaliatory moves against American technology sanctions.
The anti-dumping probe will run for about a year and may be extended by another six months, if needed, while the anti-bias probe usually takes about three months, according to the trade regulator.