China Launches Semiconductor Probes Ahead of High-Stakes Trade Talks with U.S.
Madrid, Spain – As U.S. Treasury Secretary Janet Yellen prepares for crucial talks with Chinese Vice Premier He lifeng in Madrid this week, Beijing has escalated trade tensions by launching two investigations targeting the American semiconductor industry. The move, announced Saturday by China’s Ministry of Commerce, comes amidst ongoing negotiations focused on trade imbalances, national security concerns, and the future of TikTok.
One probe will investigate potential anti-dumping practices related to specific analog integrated circuit (IC) chips imported from the united states. The examination will focus on commodity interface IC chips and gate driver IC chips - components manufactured by prominent U.S.firms like Texas Instruments and ON Semiconductor. Simultaneously, a separate investigation was announced to examine potential discriminatory measures enacted by the U.S.against China’s own burgeoning chip sector.
A spokesperson for the Chinese Ministry of Commerce asserted that U.S. export controls and tariffs are “containment and suppression” tactics aimed at hindering China’s advancements in critical high-tech industries, including advanced computer chips and artificial intelligence.
This retaliatory action follows a Friday proclamation from the U.S. adding 23 Chinese companies to its “entity list,” restricting their access to U.S. technology and investment due to alleged threats to national security and foreign policy interests. Notably, two of the listed companies are accused of procuring chipmaking equipment for Semiconductor Manufacturing International Corporation (SMIC), a major Chinese chip manufacturer.
The Madrid meetings, scheduled from Sunday to Wednesday, represent the latest round in a series of ongoing dialogues between Washington and Beijing. Previous discussions where held in Geneva, London, and Stockholm, resulting in temporary 90-day pauses on escalating reciprocal tariffs – a strategy aimed at preventing a full-blown trade war.
Following the most recent talks in Stockholm, Secretary Yellen described the conversations as “very fulsome,” emphasizing the need to “de-risk” strategic industries like rare earths, semiconductors, and pharmaceuticals, and to work towards a more balanced economic relationship.
The U.S. has maintained restrictions on China’s access to advanced semiconductors under both the Trump and biden administrations, citing national security concerns. China, however, views these restrictions as a deliberate attempt to stifle its economic growth and technological innovation. The outcome of this week’s talks in Madrid will be closely watched as both nations navigate a complex and increasingly competitive economic landscape.
Keywords: China, US, Trade War, Semiconductors, Janet Yellen, He Lifeng, TikTok, trade Talks, Anti-Dumping, National Security, SMIC, Technology, Economy, Madrid.
