China Launches Chip Trade Probe Ahead of U.S. Talks in Spain

China’s Ministry of Commerce has launched two investigations into U.S. trade practices targeting the semiconductor sector, just before high-level talks with Washington in Madrid. The first probe will examine whether U.S. chip trade policies unfairly discriminate against Chinese firms, while the second will investigate suspected dumping of American analog chips used in devices like hearing aids, Wi-Fi routers, and sensors.

Beijing accused Washington of imposing discriminatory restrictions and export controls aimed at suppressing China’s development in advanced computing and artificial intelligence. The ministry warned that such protectionist actions harm Chinese companies and vowed to defend national interests if necessary.

The investigations come as Chinese Vice Premier He Lifeng prepares to lead a delegation to Spain for trade discussions from September 14–17. Talks will cover tariffs, export controls, and the fate of TikTok, which faces a possible U.S. ban unless it shifts to American ownership. Former President Donald Trump extended TikTok’s deadline to divest its U.S. operations until September 17.

On Friday, the U.S. Commerce Department added 32 entities, including 23 in China, to its restricted trade list. Among them were firms accused of illegally obtaining U.S. chipmaking equipment for leading Chinese semiconductor manufacturer SMIC.

This meeting in Madrid will be the fourth major in-person dialogue between the two nations this year, following sessions in Geneva, London, and Stockholm. Both sides previously agreed to extend a pause on tariffs until November 10, helping to stabilize trade and ensure U.S. access to rare earth minerals from China.

China’s state media defended its stance on data security, insisting Beijing has never demanded overseas companies hand over foreign data. Officials reiterated that China will take “necessary measures” if the U.S. continues to undermine its technology sector.