- China opens two investigations into U.S. chip policies and alleged dumping practices
- Beijing says U.S. restrictions discriminate against Chinese companies and disrupt global supply chains
- Trade talks in Madrid expected to address tariffs, export curbs, and TikTok deadline
China has opened two investigations into U.S. chip trade practices, Reuters reports.
According to the Ministry of Commerce, the first inquiry will focus on whether Chinese firms have faced unfair treatment under Washington’s chip policies.
The second investigation concerns claims that some U.S. analog chips, including those found in hearing aids, and Wi-Fi routers, are being dumped into the Chinese market.
Protectionist practices
Officials say the United States has imposed multiple restrictions on China’s access to advanced technology in recent years, ranging from export limits to targeted trade reviews.
The ministry describes these as “protectionist practices” that “are suspected of discriminating against China and are intended to curb and suppress China’s development of high-tech industries such as advanced computing chips and artificial intelligence.”
The U.S. has introduced and tightened a series of restrictions on the export of advanced AI chips to China, including high-end Nvidia processors used for training large AI models.
The American government claims the action is necessary to prevent Chinese firms from getting their hands on technology that could enhance China’s military capabilities.
The measures, first introduced in 2022 and expanded in the years since, block sales of Nvidia’s A100 and H100 chips as well modified versions made for the Chinese market.
U.S. officials argue the controls are necessary for national security, while Beijing says they unfairly target Chinese companies and disrupt global supply chains.
Reuters reports that Beijing is sending a delegation to Madrid for trade talks with U.S. officials, with the agenda set to cover tariffs, export controls, and the future of TikTok, which is facing a September 17 deadline to divest its U.S. operations.
“What is the U.S.’s intention in imposing sanctions on Chinese companies at this time?” the ministry asked in a statement.
“China urges the U.S. to immediately correct its erroneous practices and cease its unwarranted suppression of Chinese companies. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”
The ministry’s comments follow Washington’s move to expand its restricted trade list by 32 entities, including 23 from China.
Among them, Reuters says, are two companies accused of sourcing chipmaking tools for SMIC, China’s largest contract chip producer.
