Key points
- China initiated two investigations into US chip trade policies: one for discrimination and one for dumping.
- The investigations target US restrictions on Chinese chip companies, deemed protectionist.
- The talks will address various trade issues, including tariffs, export controls, and the issue of TikTok.
- China firmly rejects accusations of data security risks related to TikTok.
China’s Ministry of Commerce launched a double-pronged attack against US chip trade policies on Saturday, initiating both anti-discrimination and anti-dumping investigations. This aggressive move precedes a crucial round of US-China trade talks scheduled for September 14-17 in Madrid, adding significant tension to the already complex bilateral relationship.
The anti-discrimination investigation will scrutinize whether US policies unfairly target Chinese companies in the chip sector. At the same time, the anti-dumping probe focuses on the alleged dumping of US-made analog chips into the Chinese market.
The Ministry of Commerce contends that the US has implemented a series of restrictive measures, including export controls and trade investigations, which they characterize as protectionist and aimed at stifling China’s technological advancement.
These actions, according to the ministry, discriminate against Chinese companies and hinder the development of key sectors, such as advanced computing and artificial intelligence. The statement issued by the Ministry strongly urged the US to rectify these practices and cease its alleged suppression of Chinese businesses, vowing to defend the rights and interests of its companies.
Adding fuel to the fire, just days before the Madrid talks, the US added 32 entities, including 23 Chinese companies, to its restricted trade list. This further escalated tensions and underscores the underlying friction in the technology sector.
The upcoming Madrid discussions, the fourth major in-person meeting between high-level officials this year, aim to maintain a fragile trade truce. This truce, achieved after negotiations in Geneva, London, and Stockholm, includes a 90-day extension of a tariff pause, originally extended by President Trump until November 10th.
The talks will also address the contentious issue of TikTok, ByteDance’s short-video app, which faces a potential US ban unless it undergoes a significant restructuring to appease US national security concerns.
China has vehemently rejected allegations that TikTok poses a data security risk, emphasizing its commitment to data privacy and insisting it would never compel companies to provide data to the Chinese government in violation of foreign laws. The outcome of these Madrid talks will significantly impact the trajectory of US-China trade relations in the coming months.
