China Launches Anti-Discrimination, Dumping Probes Into US Chips

China's Ministry of Commerce initiated an anti-discrimination investigation into U.S. trade policy regarding chips on Saturday. A separate investigation into dumping was also launched, the day before a new round of U.S.-China trade talks.

The anti-discrimination probe will examine whether Washington has discriminated against Chinese companies in its policies on chip trade. The anti-dumping investigation targets suspected dumping of imports of some U.S. analog chips used in devices such as hearing aids, Wi-Fi routers, and temperature sensors.

In a statement, the ministry said the United States had imposed a series of restrictions on China over chips in recent years. These restrictions include trade discrimination investigations and export controls.

Such "protectionist" practices are suspected of discriminating against China. The ministry added these practices are intended to curb and suppress China's development of high-tech industries, including advanced computing chips and artificial intelligence.

A new round of dialogue with the United States is scheduled from Sept. 14-17 in Madrid, Spain. Chinese Vice Premier He Lifeng is due to lead the Chinese delegation.

The commerce ministry stated the two sides will discuss economic and trade issues such as U.S. tariffs, the 'abuse' of export controls, and ByteDance's TikTok. In a separate statement on the talks on Saturday, the ministry questioned Washington's policies.

On Friday, the United States added 32 entities, 23 of them in China, to a commerce department restricted trade list. These included two Chinese firms accused of acquiring U.S. chipmaking equipment for China's top chipmaker, SMIC.

The upcoming U.S.-China talks in Spain mark the fourth major in-person meeting this year. The two countries seek to maintain a trade truce that reduced retaliatory tariffs on both sides and restored the flow of Chinese rare earth minerals to the United States.

After meetings in Geneva and London, the two sides largely agreed in late July in Stockholm to extend a tariff pause for another 90 days. President Donald Trump approved the extension on Aug. 12, valid until Nov. 10.

Credit: TIKTOK

ByteDance's short video application TikTok faces a potential ban in the U.S. unless it moves to U.S. ownership. Trump extended a deadline for TikTok to divest its U.S. assets until Sept. 17.

U.S. lawmakers have stated TikTok's U.S. user data could fall into the hands of China's government.

China's official People's Daily published an article on Saturday asserting the Chinese government's commitment to data privacy and security. It stated China has never and will never require companies or individuals to collect or provide data located in foreign countries in violation of local laws.

The Chinese newspaper wrote that if the United States insists on undermining the legitimate interests of Chinese companies, China will take necessary measures to safeguard national interests and the rights of Chinese companies.

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• China's Ministry of Commerce launched anti-discrimination and anti-dumping investigations into U.S. chip policies and imports.

• The probes began one day before new U.S.-China trade talks scheduled for Sept. 14-17 in Madrid, Spain.

• The trade talks will cover topics including U.S. tariffs, the 'abuse' of export controls, and ByteDance's TikTok.

Source: REUTERS