Background on Key Figures and Context
The Chinese Ministry of Commerce launched an anti-discrimination investigation and a dumping probe into US chip policies on Saturday, just a day before another round of trade talks between the United States and China in Spain. This will be the fourth in-person meeting this year as both countries aim to maintain a trade truce.
He Lifeng, China’s Vice Premier, will lead a delegation in discussions with the United States from September 14-17 in Madrid. The talks will cover economic and trade matters, including US tariffs, export control abuses, and TikTok’s future in the United States.
Investigations into US Chip Trade Policies
The first investigation will examine whether the US has discriminated against Chinese companies in its chip trade policies. The second investigation will look into the alleged dumping of certain analog chips imported from the US, which are used in devices like hearing aids, Wi-Fi routers, and temperature sensors.
The Ministry of Commerce stated in a press release that the US has imposed various restrictions on China regarding chips over the past few years, including investigations into trade discrimination and export controls.
These “protectionist” practices are suspected of discriminating against China and attempting to hinder and suppress the development of Chinese high-tech industries, such as advanced computing chips and artificial intelligence.
Trade Talks in Madrid
The upcoming trade talks between the US and China in Spain will be the fourth significant in-person meeting this year, as both countries strive to maintain a trade truce that has reduced retaliatory tariffs on both sides and restored the flow of Chinese rare-earth minerals to the US.
Following meetings in Geneva and London, both parties agreed in late July in Stockholm to extend a tariff truce for another 90 days. President Donald Trump approved the extension on August 12, extending it until November 10.
The application of TikTok, ByteDance’s short video platform facing a potential US ban unless it becomes American-owned, will be on the agenda during the Spanish talks.
Trump has extended the deadline for TikTok to divest its US assets until September 17. US lawmakers have expressed concerns that TikTok’s US user data could fall into the hands of the Chinese government.
The Chinese government attaches great importance to data privacy and security, and it has never demanded or will demand that companies or individuals collect or provide data located in foreign countries for the Chinese government, violating local laws, according to an article in the official Chinese daily People’s Daily.
Key Questions and Answers
- What is the purpose of the US imposing sanctions on Chinese entities now? China urges the US to immediately correct its erroneous practices and cease unjustified repression of Chinese companies. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.
- What is the significance of these investigations? The investigations aim to address concerns over discriminatory practices and dumping in the US chip trade policies, which China believes are hindering its high-tech industries’ development.
- What issues will be discussed in the Madrid trade talks? The US and China will discuss various economic and trade matters, including tariffs, export controls, and the future of TikTok in the US.
- Why is TikTok a topic of discussion? TikTok, owned by ByteDance, faces a potential US ban unless it becomes American-owned. The concern is that Chinese authorities could gain access to US user data, which has led to discussions in the ongoing trade talks.
