China starts probes targeting US semiconductor sector

"The probes come shortly after the U.S. added 23 more China-based companies to its entity list, which imposes restrictions on businesses deemed to be acting contrary to the national security or foreign policy interests of the U.S. China's public rebuke of U.S. trade measures sets up a tense opening for a multiday meeting between top officials on both sides. U.S. Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng in Madrid to discuss trade, economic and national security issues."

"Semiconductors have grown into a key ground of contestation, as the U.S. has cut off China's access to the most advanced artificial intelligence accelerators and used the licensing of some less-powerful Nvidia Corp. hardware as a bargaining chip though Chinese officials have pushed back and expressed reservations about security risks. The unsettled state of negotiations has also found expression in China recently making its first use of a so-called anti-circumvention investigation that led to anti-dumping duties on U.S. optical fiber imports."

China's Ministry of Commerce opened two investigations targeting the U.S. semiconductor sector: an anti-dumping probe into certain American-made analog IC chips and an anti-discrimination probe into U.S. measures against Chinese chip firms. The actions followed the U.S. adding 23 China-based companies to its entity list, which restricts firms deemed contrary to U.S. national security or foreign policy interests. The investigations precede multiday talks between senior officials, including U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Madrid, covering trade, economic and national security issues. Semiconductors are a central point of contention amid U.S. limits on advanced AI accelerators and licensing controls. China recently used an anti-circumvention probe to impose anti-dumping duties on U.S. optical fiber imports, signaling such tools may be employed more broadly.

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