China and the United States have found themselves once again at the center of a heated trade dispute, as both nations prepare for a pivotal round of economic talks in Madrid. On Saturday, September 13, 2025, China’s Ministry of Commerce announced the launch of two major investigations targeting U.S. trade policy—one probing alleged discrimination against Chinese companies in the semiconductor sector, and another scrutinizing suspected dumping of U.S. analog chips into the Chinese market. These moves come just a day before American and Chinese officials are set to meet in Spain, underscoring the persistent tensions between the world’s two largest economies.
According to Reuters, the first investigation will examine whether Washington’s policies on chip trade have unfairly targeted Chinese firms. The second investigation focuses on the alleged dumping of certain U.S. analog chips, which are commonly used in devices such as hearing aids, Wi-Fi routers, and temperature sensors. China’s Ministry of Commerce stated that the United States has imposed a series of restrictions in recent years—including export controls and trade discrimination investigations—described as “protectionist” practices intended to curb China’s high-tech ambitions in fields like advanced computing chips and artificial intelligence.
“China urges the U.S. to immediately correct its erroneous practices and cease its unwarranted suppression of Chinese companies. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” the ministry declared in a statement, as reported by CBC News. The strong language reflects Beijing’s growing frustration with what it views as a steady escalation of American pressure on its technology sector.
Meanwhile, a high-level U.S. delegation led by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng and other senior officials in Madrid. The talks, which kick off on Sunday, September 14, 2025, and run through Wednesday, will cover a wide range of trade and economic issues, from tariffs and export controls to the fate of the popular video app TikTok.
This upcoming session marks the fourth major in-person meeting between the two sides this year, reflecting a cautious effort to maintain a fragile trade truce. After a series of earlier meetings in Geneva and London, U.S. and Chinese negotiators met in Stockholm in July 2025, where they agreed in principle to extend a tariff pause for another 90 days. President Donald Trump formally approved the extension on August 12, setting the new expiration date for November 10, 2025. The truce has sharply reduced retaliatory tariffs on both sides and restored the flow of rare-earth minerals from China to the United States, a critical lifeline for American manufacturers.
The Madrid talks are set against a backdrop of fresh tensions. On Friday, September 12, the U.S. Commerce Department added 32 entities—including 23 Chinese firms—to its restricted trade list. Among them were two companies accused of acquiring U.S. chipmaking equipment for China’s leading semiconductor manufacturer, SMIC. The move was the latest in a series of American actions aimed at limiting China’s access to advanced technology, and it has not gone unnoticed in Beijing.
China’s Ministry of Commerce responded swiftly, questioning the timing and motives behind the new sanctions. “What is the U.S.'s intention in imposing sanctions on Chinese companies at this time?” the ministry asked pointedly. “If the U.S. insists on undermining the legitimate interests of Chinese companies, China will take necessary measures to safeguard national interests and the rights of Chinese companies,” it warned, as reported by CBC News.
Another major point of contention is the fate of TikTok, the short video app owned by China’s ByteDance. Under intense scrutiny from U.S. lawmakers, TikTok faces a looming deadline—Wednesday, September 17, 2025—to divest its U.S. assets or risk being banned in the United States. American officials have raised concerns that U.S. user data could be accessed by the Chinese government, a claim Beijing has repeatedly denied.
China’s official People’s Daily addressed these anxieties directly, stating on Saturday, “The Chinese government attaches great importance to data privacy and security and has never and will never require companies or individuals to collect or provide data located in foreign countries for the Chinese government in violation of local laws.” The statement sought to reassure both American lawmakers and the international community, but skepticism remains high in Washington.
Trade and technology are not the only issues on the agenda. U.S. Treasury Secretary Scott Bessent has been pushing America’s Group of Seven allies to impose “meaningful tariffs” on imports from China and India. The goal, according to Bessent, is to pressure both nations to curtail purchases of Russian oil, thereby reducing Moscow’s revenue stream and bringing it to the negotiating table over Ukraine. This call for coordinated action adds another layer of complexity to already fraught U.S.-China relations.
For their part, Chinese officials have consistently maintained that recent U.S. trade restrictions are part of a broader strategy to suppress China’s rise as a global technology leader. The Ministry of Commerce contends that American policies are designed not only to protect domestic industries but also to stifle competition in emerging fields like artificial intelligence and advanced semiconductors. “Such ‘protectionist’ practices are suspected of discriminating against China and are intended to curb and suppress China’s development of high-tech industries such as advanced computing chips and artificial intelligence,” the ministry stated, as reported by Reuters.
At the same time, the U.S. has justified its actions on national security grounds, arguing that restricting the export of sensitive technologies and scrutinizing foreign investments are necessary to protect American interests. Lawmakers in Washington have repeatedly expressed concern that Chinese firms could be compelled to hand over data or technology to Beijing, potentially undermining the security of U.S. companies and citizens.
Both sides appear determined to stand their ground, at least for now. As the Madrid talks get underway, the stakes are high—not just for China and the United States, but for the global economy as a whole. The outcome of these negotiations could shape the trajectory of trade, technology, and geopolitics for years to come.
With the clock ticking on key deadlines—most notably for TikTok’s future in the U.S.—and both nations signaling a willingness to take “necessary measures” to defend their interests, the world will be watching closely. Whether the Madrid meetings yield progress or deepen the divide remains to be seen, but one thing is clear: the U.S.-China trade saga is far from over.