China Targets U.S. Chipmakers with Dual Investigations Ahead of High-Stakes Madrid Trade Talks

China has initiated two strategic investigations of U.S. imports of semiconductors on the eve of high-stakes trade negotiations in Madrid. The Commerce Ministry issued an anti-dumping investigation of analog interface and gate driver IC chips—components usually made by American firms such as Texas Instruments and ON Semiconductor. Concurrently, an anti-discrimination investigation was initiated against U.S. practices China claims unfairly suppress its high-technology industries.

These moves follow increasing tensions, with the United States recently adding 23 Chinese companies to its entity list on national security threats. Among them are firms that are reportedly buying chip manufacturing equipment for SMIC, China's leading semiconductor manufacturer.

The timing is key. U.S. Treasury Secretary Scott Bessent will sit down with Chinese Vice Premier He Lifeng in Madrid between Sunday and Wednesday. Trade, national security, and TikTok ownership are on the agenda. Previous rounds of talks in Geneva, London, and Stockholm have yielded temporary tariff truces but stakes are high.

China argues that U.S. tariffs and export controls are just one part of a strategy to contain its emerging technological power, especially in fields like advanced computing and artificial intelligence. The Madrid negotiations might be the key to whether the two countries stay on a course of economic conflict or find shared interests to de-risk key sectors.