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China’s Ministry of Commerce has escalated the China-US chip trade dispute by launching two investigations into U.S. trade practices just ahead of high-level talks in Spain.
On Saturday, Beijing announced an anti-discrimination probe targeting U.S. policies on chip trade, alongside a separate investigation into alleged dumping of American analog chips used in products such as hearing aids, Wi-Fi routers, and temperature sensors.
The ministry said Washington has imposed a series of restrictions on China in recent years, including trade discrimination reviews and export controls. It described these actions as “protectionist” measures aimed at curbing China’s growth in advanced technologies like artificial intelligence and high-performance chips.
The new developments come as Chinese Vice Premier He Lifeng prepares to lead a delegation to Madrid for economic and trade talks with the United States from September 14–17. The discussions will cover tariffs, export controls, and the fate of TikTok, which faces a looming deadline in the U.S. to divest its American operations.
Beijing criticized Washington’s recent decision to add 32 entities, including 23 Chinese firms, to its restricted trade list. Among them were companies accused of sourcing U.S. chipmaking equipment for SMIC, China’s leading chipmaker.
The China-US chip trade dispute is unfolding as both nations attempt to maintain a fragile truce, which has reduced retaliatory tariffs and restored Chinese rare earth exports to the U.S. After earlier meetings in Geneva, London, and Stockholm, both sides agreed in late July to extend a tariff pause for another 90 days, a move approved by President Donald Trump until November 10.
TikTok remains a flashpoint, with U.S. lawmakers citing data security concerns. China’s state media countered that the government does not and will not compel companies to hand over foreign user data in violation of local laws.
Chinese officials have warned that if the U.S. continues to undermine the interests of its companies, Beijing will take firm steps to safeguard national rights and corporate interests.
