On Saturday, September 13, 2025, China’s Ministry of Commerce set the stage for a new chapter in the ongoing U.S.-China tech rivalry by announcing two major investigations into American semiconductor practices. The move, unveiled just a day before high-level trade talks between the two superpowers, signals Beijing’s determination to push back against what it sees as unfair and discriminatory U.S. trade policies.
The first of these investigations is an anti-discrimination probe targeting U.S. chip trade policy. According to Reuters, the ministry will be examining whether Washington has discriminated against Chinese companies in its approach to chip trade. The second investigation zeroes in on suspected dumping of American-made analog integrated circuit (IC) chips—essential components found in everything from hearing aids and Wi-Fi routers to industrial temperature sensors—into the Chinese market.
China’s Ministry of Commerce did not mince words in its public statement, accusing the United States of imposing a “series of restrictions” on Chinese chipmakers in recent years. These restrictions, which include export controls and trade discrimination investigations, are described as “protectionist” practices aimed at stifling China’s progress in advanced computing chips and artificial intelligence. The ministry declared, “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.”
These investigations are far from isolated. As Bloomberg and the South China Morning Post have reported, they are part of a broader tit-for-tat pattern that has defined the U.S.-China trade conflict, which has only intensified during President Donald Trump’s second term. The timing of Beijing’s announcement is strategic, coming just as a Chinese delegation led by Vice Premier He Lifeng prepares for a new round of economic and trade talks with the U.S., scheduled from Sunday, September 14, through Wednesday, September 17, in Madrid, Spain.
The agenda for these talks is packed. As outlined by China’s Commerce Ministry, the two sides are expected to discuss U.S. tariffs, the “abuse” of export controls, and the fate of ByteDance’s popular short video app, TikTok. The latter faces a looming U.S. ban unless it moves to American ownership, with President Trump having extended the deadline for divestment until Wednesday, September 17. U.S. lawmakers have repeatedly voiced concerns that TikTok’s American user data could be accessed by the Chinese government—a claim China flatly denies. As China’s official People’s Daily put it, “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 anti-dumping probe focuses squarely on analog IC chips imported from the U.S., products that have become indispensable in a range of electronic devices. Industry experts, as cited by outlets like Fortune and Cryptopolitan, warn that the investigation could hit major American firms such as Texas Instruments and Analog Devices particularly hard. If China finds evidence of dumping—selling products below market value to undercut local competitors—it could impose tariffs or other restrictions. That would be a major blow, given the size of the Chinese electronics market and the reliance of U.S. chipmakers on sales in the region.
Meanwhile, the anti-discrimination investigation scrutinizes U.S. measures that Beijing claims are unfairly targeting Chinese semiconductor companies. These include not just export controls but also investment restrictions, all justified by Washington on national security grounds. According to Xinhua, China views these actions as discriminatory and may escalate the matter to global trade forums, potentially challenging the U.S. under World Trade Organization rules.
The stakes are high for both sides. On Friday, September 12, the United States added 32 entities—including 23 from China—to its Commerce Department restricted trade list. Among them were two Chinese companies accused of acquiring U.S. chipmaking equipment for China’s top chipmaker, SMIC. This move, as detailed by Reuters, further complicates the already fraught landscape of global semiconductor supply chains.
Market reactions to the probes were swift. Semiconductor indices dipped in after-hours trading, as reported by posts on X (formerly Twitter) and financial analysts like Schaeffer’s Investment Research. The mere announcement of these investigations sent ripples through the industry, with companies like NVDA and AMD seeing heightened volatility. As one post succinctly put it, "These probes are a direct response to U.S. actions against Chinese chipmakers and may trigger broader supply chain disruptions."
The probes also come against the backdrop of a fragile trade truce between the two nations. Earlier this year, after meetings in Geneva and London, both sides agreed in Stockholm to extend a pause on retaliatory tariffs for another 90 days—a move President Trump approved on August 12, with the extension lasting until November 10. This truce had helped restore the flow of Chinese rare-earth minerals to the U.S., a critical component in high-tech manufacturing.
But the calm is proving temporary. With Trump threatening to impose tariffs of up to 300% on semiconductor imports, as noted in an August analysis by Al Jazeera, and Beijing responding with its own measures, the risk of escalation is ever-present. Industry insiders point out that previous rounds of tariffs and export controls have already forced companies to diversify their supply chains, reducing reliance on either U.S. or Chinese manufacturing. As Jason Smith observed on X, "Biden-era tariffs inadvertently boosted China’s capabilities, making it a formidable competitor." Now, with the renewed focus on curbing Chinese tech advances, the global tech ecosystem faces the very real possibility of splitting into two separate standards—one led by the U.S., the other by China.
For U.S. companies, the implications are stark. Texas Instruments, for example, derives a significant portion of its revenue from China. Any adverse findings from Beijing’s investigations could erode its market share and set a precedent for further regulatory scrutiny. As Cryptopolitan analysts warn, if China imposes duties on U.S. chips, electronics manufacturers worldwide could face increased costs, especially in automotive, consumer electronics, and industrial sectors—areas already feeling the pinch from earlier trade barriers.
Looking ahead, the coming days in Madrid will be pivotal. Both sides are expected to bargain hard, with technology exports, tariffs, and the future of TikTok all on the table. The outcome could shape not only the trajectory of U.S.-China relations but also the future of global innovation. As one industry veteran put it, "These actions could accelerate a bifurcation of global tech standards, forcing companies to choose sides in an increasingly polarized market."
With both nations digging in and the stakes for economic growth and technological leadership rising, the world is watching closely. Whatever happens next, it’s clear that the battle over chips is about much more than technology—it’s about who will set the rules for the 21st-century digital economy.