China Targets U.S. Semiconductor Sector Amid Trade Talks
China has recently launched two investigations into the U.S. semiconductor industry, coinciding with upcoming trade discussions in Spain. The Ministry of Commerce announced an anti-dumping probe focusing on specific integrated circuit (IC) chips imported from the U.S. This affects common components produced by firms like Texas Instruments and ON Semiconductor.
Additionally, there’s an anti-discrimination investigation aimed at U.S. actions perceived to hinder China’s chip industry. A spokesperson from the Chinese Ministry of Commerce criticized U.S. measures, stating they hinder China’s growth in high-tech sectors, including advanced computer chips and artificial intelligence.
On the U.S. side, recent actions include adding 23 Chinese companies to an “entity list” that imposes restrictions due to national security concerns. This list includes firms linked to chipmaking equipment for the major Chinese chipmaker, SMIC.
U.S. Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng in Madrid. These discussions are part of ongoing efforts to ease trade tensions and delay the introduction of higher tariffs. The two countries had previous talks in Geneva, London, and Stockholm, which were described as “very fulsome” by Bessent. He emphasized the need for balance in key industries such as rare earths, semiconductors, and medicines.
Historically, the U.S. has imposed restrictions on China’s access to advanced semiconductor technology, citing security concerns. However, China sees these actions as an attempt to suppress its development. This conflict reflects broader trade tensions that have been escalating over recent years.
Recent surveys show that public sentiment in both nations is shifting. In the U.S., many people are increasingly concerned about reliance on China for critical technologies like chips, while in China, citizens express a strong desire for economic independence from U.S. tech.
As these discussions in Madrid unfold, many are watching closely, aware that the outcomes could shape the future of technology and commerce between these two powerful nations.
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Scott Bessent, BigCommerce Holdings, Inc., China, Joe Biden, Semiconductor manufacturing, China government, Madrid, Discrimination, General news, International, Finance Business, Asia Pacific, Business, International trade, Texas Instruments Incorporated, Politics, United States government, U.S. Department of Commerce, Donald Trump, ON Semiconductor Corp., Commerce.com, Inc., Technology, World news, National security
