China Launches Investigations into US Semiconductor Practices

China's Ministry of Commerce has initiated two significant investigations targeting the US semiconductor sector: an anti-dumping probe into certain analog integrated circuit (IC) chips and an anti-discrimination investigation into US trade practices. Announced on September 13, 2025, these actions coincide with ongoing trade talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Madrid. The investigations are seen as a direct response to recent US sanctions that added 23 Chinese companies to an entity list, restricting their access to American technology.

CityLabChina launches two probes against the US: For discriminating against Chinese companies and dumping US analog chipsChina Launches Probes of US Chip SectorChina Probes US Chips Before Madrid TalksChina Probes U.S. Chip Firms Amid Escalating Trade TensionsCityLab

The anti-dumping investigation focuses on US-made analog IC chips, particularly general-purpose interface and gate driver chips produced by companies such as Texas Instruments Inc. and Analog Devices Inc. The Chinese government claims that imports of these chips surged by 37% while their prices fell by 52% from 2022 to 2024, adversely affecting domestic competitors. The probe is expected to last for a year, with a possible six-month extension.

South China Morning PostChina launches anti-dumping probe into US analogue chip suppliersCityLabSouth China Morning PostChina Probes US Chips Before Madrid TalksChina Launches Probes of US Chip Sector

Simultaneously, the anti-discrimination investigation will examine whether US policies have unfairly targeted Chinese semiconductor companies. This inquiry will scrutinize additional tariffs imposed under the US Section 301 investigation since 2018 and recent export controls that restrict US chip products and manufacturing equipment from entering China. The Ministry of Commerce argues that these practices constitute a suppression of China's high-tech industries, including artificial intelligence and advanced computing.

China Launches Probes of US Chip SectorChina launches two probes against the US: For discriminating against Chinese companies and dumping US analog chipsChina Probes U.S. Chip Firms Amid Escalating Trade TensionsCityLabChina Probes US Chips Before Madrid TalksChina Targets US Chip Sector With Probes Into Nvidia, ‘Dumping’

The investigations are anticipated to bolster China's domestic semiconductor industry by reducing competitive pressure from US imports. Analysts predict that local companies such as Silergy, SGMicro, and Novosense Microelectronics will benefit from the reduced pricing pressure, allowing them to capture greater market share. The Chinese semiconductor market, which is projected to reach $44 billion by 2025, is increasingly vital as the country seeks to achieve self-sufficiency in chip production by 2030.

China launches anti-dumping probe into US analogue chip suppliers

Critics of the US trade policies argue that the restrictions are part of a broader strategy to contain China's technological growth. Chinese officials have condemned these measures as protectionist and discriminatory, urging the US to correct its practices. The US Treasury Secretary has acknowledged the "poor timing" of China's investigations, suggesting they may complicate ongoing negotiations.

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China's Ministry of Commerce stated, "The US has taken a series of prohibitions and restrictions against China in the field of integrated circuits over recent years... Such protectionist practices are suspected of discrimination against China." Meanwhile, US officials have not publicly commented on the investigations.

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The outcome of these investigations could significantly impact US-China trade relations, particularly in the semiconductor sector. As both nations prepare for further discussions, the semiconductor industry remains a focal point of contention, with potential ramifications for global supply chains and technological advancements.

China Probes U.S. Chip Firms Amid Escalating Trade Tensions

• “China urges the US to immediately correct its erroneous practices and cease its unwarranted suppression of Chinese companies.” — Ministry of Commerce Spokesperson

China Targets US Chip Sector With Probes Into Nvidia, ‘Dumping’

• “The investigation is expected to create a healthier development environment for domestic analogue chipmakers,” — Zhang Guobin, Founder of eetrend.com

China launches anti-dumping probe into US analogue chip suppliers

• “Both sides appear to be building leverage to negotiate from a more favourable position, but they are doing this through very calculated moves because they understand the stakes at play,” — Alfredo Montufar-Helu, Managing Director at GreenPoint

China Targets US Chip Sector With Probes Into Nvidia, ‘Dumping’

• “It’s a warning that if the US export control paradigm operates in the same way as in the past several years there will be consequences, and China is willing to inflict damage on US companies,” — Zhengyuan Bo, Partner at Plenum

China Targets US Chip Sector With Probes Into Nvidia, ‘Dumping’

These developments underscore the escalating tensions between the US and China in the semiconductor arena, with both sides employing strategic measures to influence the outcome of their negotiations.

China Probes U.S. Chip Firms Amid Escalating Trade Tensions