China opens anti-discrimination and anti-dumping probes targeting US-made analog chips amid rising trade tensions.
China’s discrimination and dumping investigation against US chips: A detailed analysis
The tension between China and the US in the field of global trade and technology has reached a new turning point. And on 13 September 2025, China announced the launch of a double investigation of discrimination and dumping against US semiconductor products. But this step was taken just when both the countries were getting ready for trade talks in Madrid on 14-17 September. This move by China is being seen in response to the recent inclusion of 23 Chinese companies in the restricted list by the US. And in which two companies were accused of obtaining US chip manufacturing equipment for China’s major chip manufacturer SMIC. Also in this article we will discuss in detail the background, reasons, potential impacts, and broader global context of these investigations. Which will also shed light on other aspects like India-China trade relations and the role of AI detection tools.
Series of US sanctions
The US has imposed several sanctions in the last few years to curb China’s growing dominance in high-tech industries, especially in the field of semiconductors and artificial intelligence. According to reports, the US has recently put 32 entities (23 of which are based in China) on the banned list. These include companies that have been accused of acting against US national security and foreign policy interests. Also, China’s response and the nature of the investigation which is an anti-discrimination investigation. This investigation will investigate whether the US has discriminated against Chinese companies in its trade policies. Also anti-dumping investigation but this investigation will be done on some specific analog integrated circuit (IC) chips imported from the US. These chips are used in devices such as hearing aids, Wi-Fi routers, and temperature sensors and are mainly manufactured by US companies such as Texas Instruments and ON Semiconductor.
Table Summary of investigations announced by China
Type of investigation Target Potential impact Anti-discrimination investigation Discrimination against Chinese companies in US trade policies Demand for changes in US policies Anti-dumping investigation Analog IC chips imported from the US Additional duties on these chips Also the context of the Madrid trade talks This investigation has come at a time when a high-level trade dialogue is to be held in Madrid between US Treasury Secretary Scott Bessant and Chinese Vice Premier He Lifeng. But the agenda of this dialogue is issues like US tariffs, abuse of export controls and TikTok. Also, China has made it clear that it will take necessary steps to protect the “legitimate rights and interests of Chinese companies”.
Also the impact on the semiconductor industry These semiconductors are the backbone of the modern economy. Which powers everything from smartphones to military equipment. This tension between China and the US could significantly affect the global supply chain. But US sanctions have already limited China’s access to advanced chips. And this investigation by China could create new obstacles for US chip makers. Which could further increase the global chip shortage.
TikTok and the geopolitics of technology
One of the key points of the talks is the ownership of TikTok. The US has expressed concern that data of US users of TikTok could fall into the hands of the Chinese government, and has therefore demanded that it be transferred to US ownership. China has rejected this allegation, saying that it never orders companies to collect or provide data located abroad in violation of local laws.
The dispute reflects a larger geopolitical battle over data sovereignty and control over technology. Also, the impact on bilateral trade relations, which both countries are already embroiled in a tariff war. The US has imposed a 145% tariff on Chinese goods, while China has imposed a 125% tax on US goods in response. However, both sides have agreed on a 90-day tariff pause to avoid a full-blown trade war. But this investigation could complicate these efforts or increase China’s bargaining power in the talks.
India-China Trade Relations: A Comparative View
Trade tensions with China are not just limited to the US. China’s trade relations with India have also been strained, especially since the border dispute on the Line of Actual Control. As well as China’s informal sanctions on India, according to reports, China has imposed several informal trade sanctions on India, aimed at affecting India’s electronics supply chain and weakening India’s emerging as a global manufacturing hub. And China has stopped the supply of rare minerals to India. Which are extremely important for electronics manufacturing. Also, the supply of capital equipment and other minerals has also been banned.
These sanctions are having a direct impact on India. Also, the electronics industry is at risk. India has set a target of $32 billion smartphone exports by the financial year 2026. But this target may be in danger due to China’s action. Also rising production costs: Due to Chinese imports, India has set a target of $32 billion smartphone exports by the financial year 2026. Adopting alternatives (such as Japan or Korea) can increase the production cost by 3-4 times. Which will weaken the global competitiveness of Indian products.
Table Key points of India-China trade tension
Issue Impact on India India’s possible response Ban on rare land minerals Blocked electronics manufacturing Finding alternative supply sources Blocking the supply of capital equipment Increase in production cost Promoting domestic manufacturing as well as banning technology transfer Limited access to advanced technology Increasing investment in indigenous R&D As well as AI detection and the role of human-mind The role of Artificial Intelligence (AI) is increasing in reporting and analysis of such complex geopolitical and economic issues.
AI tools are being used to analyze large data sets, identify trends and even write news articles. Also the need for AI detector tools The increasing use of AI-generated content has created a demand for AI detector tools. And these tools like Sapling.ai and help identify whether a text is human-written or generated by AI. Their need has also increased because AI generated content may sometimes contain false facts, bias and a mechanical tone.
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