China Begins Discrimination, Dumping Probes on US Chips

Beijing is investigating whether U.S. chip policies -- including export controls, tariffs and other trade restrictions -- are discriminating against China’s semiconductor sector by suppressing its firms from developing advanced technologies. China also launched an antidumping investigation on imports of certain U.S. analog chips.

The announcements came before U.S. and Chinese leaders met for a new round of trade talks in Spain.

The anti-discrimination probe, launched Sept. 13, will look into the “protectionist practices” of the U.S., which “are suspected of discriminating against China and are intended to curb and suppress China's development of high-tech industries such as advanced computing chips and artificial intelligence,” a Ministry of Commerce spokesperson said, according to an unofficial translation.

The ministry specifically pointed to the series of U.S. export controls over advanced chips and chip manufacturing equipment since 2022, its prohibition on certain Chinese investments in sensitive American chip industries, and May guidance from the Bureau of Industry and Security that said using certain Huawei Ascend chips “anywhere in the world” would be a violation of U.S. export controls (see 2505130018 and (see 2505210022). Beijing also pointed to tariffs that the U.S. “has or will impose” on Chinese chip imports, including Section 301 duties.

Those trade actions “not only harm China's development interests, but also seriously undermine the stability of the global semiconductor industry chain and supply chain,” the ministry spokesperson said.

China said it’s expecting the probe to last three months, and it’s accepting public comments for 30 days from Sept. 13. “We welcome the active participation of all stakeholders affected by the US measures, including Chinese industries and enterprises,” the spokesperson said. “China will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.”

China also is investigating whether certain imported American chips are violating antidumping laws, including “general-purpose interface and gate driver chips,” such as chips used to send and receive signals “between systems in automobiles and other industrial products.” Beijing said it began the probe at the request of domestic Chinese firms.

“Preliminary evidence submitted by the applicant shows that from 2022 to 2024, import volumes of the products under investigation from the United States increased by 37%, while import prices decreased by 52%,” a spokesperson said. “This has depressed and suppressed domestic product sales prices, causing damage to domestic industry production and operations.”

Companies can submit comments on the scope of that investigation within 20 days from Sept. 13. China said it’s expecting to complete it within one year.