China Probes US Chip Trade Ahead of Madrid Talks

• Beijing launches investigations into alleged discrimination and dumping of US chips, as trade negotiations resume amid rising tech tensions.

Dual Investigations Target US Chip Policies

China’s Ministry of Commerce has opened two formal investigations into U.S. trade practices concerning semiconductors. The first inquiry focuses on whether Washington has discriminated against Chinese firms in its chip-related trade policies. A second probe examines suspected dumping of U.S. analog chips, which are commonly used in hearing aids, Wi-Fi routers, and temperature sensors. These actions come just one day before a new round of bilateral trade talks begins in Madrid.

According to the ministry, the United States has imposed multiple restrictions on Chinese chipmakers in recent years, including export controls and trade investigations. Officials in Beijing argue that such measures are protectionist and designed to hinder China’s progress in advanced computing and artificial intelligence. The ministry’s statement emphasized that these practices may violate fair trade principles. China has signaled its intent to defend its tech sector against what it views as unjustified suppression.

Trade Talks Resume Amid Escalating Tensions

From September 14 to 17, Chinese Vice Premier He Lifeng will lead a delegation in Madrid for the fourth major in-person meeting with U.S. officials this year. The agenda includes discussions on tariffs, export control policies, and the future of TikTok’s U.S. operations. In a separate statement, the commerce ministry questioned the timing and intent behind recent U.S. sanctions on Chinese companies. Beijing has called for an immediate reversal of these actions and warned of countermeasures to protect domestic firms.

Just a day prior to the talks, the U.S. added 32 entities to its restricted trade list, 23 of which are based in China. Among them were two firms accused of acquiring American chipmaking equipment for SMIC, China’s leading semiconductor manufacturer. The trade meetings follow earlier sessions in Geneva, London, and Stockholm, where both sides agreed to extend a tariff pause for 90 days. President Donald Trump approved the extension on August 12, pushing the deadline to November 10.

TikTok and Data Privacy Under Scrutiny

TikTok, the short video platform owned by ByteDance, remains a focal point in the ongoing negotiations. The app faces a potential ban in the U.S. unless its American assets are transferred to domestic ownership by September 17. Lawmakers have expressed concerns that user data could be accessed by the Chinese government, prompting calls for stricter oversight. In response, China’s official People’s Daily reiterated that the government does not compel companies to violate foreign data laws.

The newspaper emphasized China’s commitment to data privacy and rejected allegations of misuse. Beijing warned that continued pressure on Chinese firms could lead to retaliatory steps aimed at safeguarding national interests. The inclusion of TikTok in the trade talks highlights the growing intersection of technology, security, and diplomacy. As both nations navigate complex economic ties, digital platforms have become central to broader strategic debates.