China has initiated two significant investigations targeting the United States semiconductor industry, launching both anti-dumping and anti-discrimination probes on September 13, 2025, just one day before high-stakes trade negotiations begin in Madrid, Spain.
Dual Investigations Target US Chip Giants
China’s Ministry of Commerce announced the launch of an anti-dumping investigation into certain American-made analog integrated circuit (IC) chips, specifically targeting commodity interface IC chips and gate driver IC chips manufactured using 40-nanometer and above process technologies. The probe directly affects major US semiconductor companies including Texas Instruments, Analog Devices, Broadcom, and ON Semiconductor.
Simultaneously, Beijing opened an anti-discrimination investigation examining US measures against China’s integrated circuit sector. According to the Ministry of Commerce, preliminary evidence indicates that US policies constitute “prohibitive, restrictive or other like measures on a discriminatory basis” under China’s Foreign Trade Law.
Timing Coincides with Madrid Trade Talks
The investigations were announced just hours before US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet in Madrid from September 14-17. The talks will address various economic and trade matters, including US tariffs, export controls, and the ownership of social media platform TikTok.
These Madrid discussions represent the latest in a series of negotiations aimed at reducing trade tensions between the world’s two largest economies. Previous talks were held in Geneva in May, London in June, and Stockholm in July.
Allegations of Market Dumping
The anti-dumping probe was initiated following a complaint filed by the Jiangsu Semiconductor Industry Association, representing China’s domestic industry. According to the association’s submission, dumping margins on US chip exports to China exceed 300 percent in some cases.
The investigation reveals that US analog chip imports to China increased by 37 percent between 2022 and 2024, while prices fell by 52 percent during the same period. Import volumes grew substantially from 1.159 billion units in 2022 to 1.59 billion units in 2024.
Chinese officials argue that these pricing practices have “depressed China’s domestic prices and harmed the production and operations of the domestic industry”.
Response to US Export Controls
China’s probes come in direct response to recent US actions against Chinese technology companies. On Friday, September 12, the US Commerce Department added 23 Chinese companies to its “entity list,” imposing restrictions on businesses allegedly acting against US national security interests.
A Chinese commerce ministry spokesperson stated that US measures “constitute the containment and suppression of China’s development of high-tech industries” such as advanced computer chips and artificial intelligence.
The spokesperson criticized the US government for having “overstretched the concept of national security, abused export controls and long-arm jurisdiction, and maliciously blocked and suppressed China’s chip products and the artificial intelligence industry”.
Investigation Timeline and Impact
The anti-dumping investigation is expected to conclude by September 13, 2026, with a possible six-month extension under special circumstances. The anti-discrimination probe typically lasts three months.
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products expressed strong support for the ministry’s decisions, calling the investigations necessary to protect Chinese enterprises’ legitimate rights.
Industry analysts suggest the probes could significantly impact US semiconductor companies’ operations in China and potentially boost Chinese domestic chipmakers’ market position.
Escalating Tech Trade War
These investigations mark another escalation in the ongoing US-China technology trade dispute. Both nations have implemented increasingly restrictive measures on each other’s tech sectors, with semiconductors becoming a central battleground.
The timing of China’s probes, launched just before critical trade talks, suggests Beijing is using the investigations as leverage in upcoming negotiations with Washington.
