China Launches Semiconductor Probes Against US, Escalating Tech Tensions

China has intensified the ongoing semiconductor trade dispute with the United States by launching two significant investigations targeting the American chip sector. These probes come in the wake of heightened US restrictions on Chinese technology companies and precede crucial bilateral talks.

Anti-Dumping Investigation

The Chinese Ministry of Commerce has initiated an anti-dumping probe into American-made analog integrated circuit (IC) chips. This investigation could potentially impact major US semiconductor manufacturers, including Texas Instruments and Analog Devices. The probe is expected to last approximately one year, with the possibility of a six-month extension.

Anti-Discrimination Probe

Simultaneously, China has opened an anti-discrimination investigation examining US actions against Chinese chip companies. This probe, typically lasting three months, aims to scrutinize what China perceives as discriminatory practices in the US semiconductor sector.

US Actions Prompting Chinese Response

These investigations appear to be a direct response to recent US measures:

• The addition of 23 more China-based companies to the US entity list, imposing business restrictions
• Ongoing US prohibitions and restrictions in the integrated circuits sector
• US Section 301 investigations and export controls

China's commerce ministry has expressed concerns that these US actions are suspected of discriminating against China and suppressing its development in advanced computing chips and AI industries.

Upcoming Bilateral Talks

The timing of these probes is significant, as they precede planned discussions between:

• US Treasury Secretary Scott Bessent
• Chinese Vice Premier He Lifeng

These high-level talks, scheduled to take place in Madrid, will cover a range of critical issues:

• Trade relations
• Economic cooperation
• National security concerns
• ByteDance's TikTok status
• Efforts to combat money laundering

Implications for the Global Semiconductor Industry

This escalation in the US-China tech dispute could have far-reaching consequences for the global semiconductor supply chain. As two of the world's largest economies engage in reciprocal investigations and restrictions, companies in both nations may face increased scrutiny and potential disruptions to their operations.

The semiconductor industry, already grappling with supply chain challenges and geopolitical tensions, may need to navigate an increasingly complex regulatory landscape as these investigations unfold.

Stakeholders in the global tech industry will be closely monitoring the outcomes of these probes and their potential impact on international trade relations and technological innovation.