China Launches Anti-Discrimination Investigation into U.S. Chip Policies

China's Ministry of Commerce initiated an investigation into U.S. trade policies regarding chips, alleging discrimination and dumping practices. As trade talks approach in Spain, China questions U.S. sanctions and prepares to discuss high-tech industry impacts, including the TikTok ownership issue.

The Chinese Ministry of Commerce has launched an investigation into U.S. trade practices surrounding semiconductor chips, citing alleged discriminatory policies against Chinese companies. The investigation, announced on Saturday, coincides with upcoming U.S.-China trade talks in Madrid.

The investigation will focus on whether the U.S. has implemented policies that unfairly target Chinese firms, particularly in the realm of advanced computing and artificial intelligence. Additionally, the Ministry accused the U.S. of dumping analog chips used in devices such as hearing aids and Wi-Fi routers.

As part of broader discussions set to take place from September 14-17, topics will include U.S. tariffs, export controls, and the potential U.S. ban on TikTok due to data privacy concerns. This comes as the U.S. recently added new entities to a restricted trade list, exacerbating tensions even as both nations seek to maintain a delicate trade truce.