China targets US chips before Madrid talks

China has initiated two separate investigations targeting the United States semiconductor sector ahead of upcoming bilateral talks in Spain focused on trade, national security, and social media ownership issues, including TikTok.

China's Ministry of Commerce announced an anti-dumping investigation into specific analog integrated circuit (IC) chips imported from the US. The probe will focus on commodity interface IC chips and gate driver IC chips, which are predominantly manufactured by American companies such as Texas Instruments and ON Semiconductor. Simultaneously, the ministry declared an anti-discrimination probe into US measures affecting China’s chip industry.

The timing of these probes precedes a scheduled meeting in Madrid between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, set to take place between September 15 and 18. The discussions aim to address ongoing trade tensions and national security concerns while postponing the implementation of higher tariffs on each other’s goods.

The Chinese commerce ministry stated that US export curbs and tariffs “constitute the containment and suppression of China’s development of high-tech industries,” including advanced computer chips and artificial intelligence. These probes follow the US announcement on September 13 adding 23 Chinese companies to its “entity list,” which imposes restrictions on firms allegedly acting against US national security and foreign policy interests. Two of the listed companies were accused of acquiring chipmaking equipment for Semiconductor Manufacturing International Corporation (SMIC), a major Chinese chipmaker.

The talks in Madrid mark the continuation of prior negotiations, including rounds in Geneva in May, London in June, and Stockholm in July. Both governments have agreed to multiple 90-day pauses on escalating reciprocal tariffs, preventing an all-out trade war. During the Stockholm discussions, Secretary Bessent highlighted the need to “de-risk certain strategic industries, whether it’s rare earths, semiconductors, medicines” to maintain balance in bilateral relations.

US presidents Donald Trump and Joe Biden previously implemented restrictions on China’s access to advanced semiconductors and chipmaking equipment, citing national security concerns, while China views these measures as an attempt to contain its technological growth.