China Targets U.S. Chip Sector with Probes Ahead of Trade Talks

On Saturday, China initiated two investigations focused on the U.S. semiconductor industry. These actions were taken just before scheduled discussions between the two countries in Spain this week, where trade, national security, and the ownership of the social media platform TikTok are on the agenda.

The Chinese Ministry of Commerce announced an anti-dumping investigation into specific analog IC chips imported from the United States. This investigation will concentrate on certain commodity interface IC chips and gate driver IC chips, which are commonly produced by U.S. companies like Texas Instruments and ON Semiconductor. Simultaneously, the ministry declared an anti-discrimination probe into U.S. measures affecting China's chip sector.

U.S. Treasury Secretary Scott Bessent is scheduled to meet with Chinese Vice Premier He Lifeng in Madrid between Sunday and Wednesday. A spokesperson from the Chinese commerce ministry stated that U.S. measures, such as export restrictions and tariffs, are seen as efforts to contain and suppress China's development in high-tech industries, including advanced computer chips and artificial intelligence.

These investigations follow the U.S.'s recent addition of 23 Chinese companies to an "entity list," which imposes restrictions on businesses allegedly acting against U.S. national security and foreign policy interests. The meetings in Madrid will continue a series of negotiations aimed at easing trade tensions and delaying the implementation of increased tariffs. Previous discussions have taken place in Geneva, London, and Stockholm. Both governments have agreed to temporary pauses on escalating reciprocal tariffs, preventing a full-scale trade war.