China Probes U.S. Analog Chips Over Dumping and Bias

China Launches Anti-Dumping and Anti-Discrimination Investigations Against U.S. Semiconductor Exports

China has initiated two major investigations targeting U.S.-made analog chips, marking a significant step in its response to recent trade restrictions imposed by the United States. The move comes as part of a broader strategy to counter what Beijing perceives as unfair treatment of its semiconductor industry.

The Chinese Ministry of Commerce announced on July 13 that it had accepted an application from the Jiangsu Semiconductor Industry Association, representing domestic analog chip manufacturers, to launch an anti-dumping investigation. This formal process began after a preliminary review confirmed the validity of the application. The investigation will focus on general-purpose interface chips manufactured using processes of 40 nanometers (nm) or larger, which are imported from the U.S. These chips are essential components in various electronic devices, handling continuous analog signals such as sound and voltage.

The ministry emphasized that while anti-dumping investigations typically conclude within one year, they can be extended for an additional six months if necessary. This timeline allows for a thorough examination of whether U.S. exports are being sold at unfairly low prices in the Chinese market, potentially harming local producers.

In addition to the anti-dumping probe, China is also conducting an anti-discrimination investigation. Under the Chinese Foreign Trade Law, the country has the authority to take retaliatory measures if another nation imposes discriminatory trade restrictions. According to the ministry, preliminary evidence suggests that U.S. policies targeting China’s integrated circuits (ICs) meet these criteria.

The scope of the investigation includes U.S. export controls on IC-related products and manufacturing equipment since 2022, as well as new restrictions introduced in May 2024. These include limitations on the use of Huawei Ascend chips and restrictions on the use of U.S. artificial intelligence (AI) chips in training Chinese AI models. The U.S. government has justified these measures as part of efforts to protect national security and prevent the transfer of sensitive technology to entities deemed a threat.

This development follows a recent announcement by the U.S. Department of Commerce on July 12, when it added 32 companies to its export control list. Among them were 23 Chinese firms, including GMC, Jiumu Shi Semiconductor, and Zhichun Semiconductor. These companies were placed on the sanctions list for allegedly aiding SMIC, a company already under U.S. export restrictions, in acquiring advanced semiconductor manufacturing equipment.

The actions taken by both nations highlight the growing tensions in the global semiconductor industry. As China seeks to bolster its domestic production capabilities, it is increasingly challenging U.S. efforts to limit access to critical technologies. The outcome of these investigations could have far-reaching implications for trade relations between the two economic powerhouses.

Key Points of the Investigation

• Anti-Dumping Probe: Focuses on U.S.-imported analog chips, specifically those made using 40 nm or larger processes.
• Anti-Discrimination Review: Examines whether U.S. trade restrictions on ICs are discriminatory.
• Timeline: Investigations may last up to 18 months if extended.
• Scope of Restrictions: Includes export controls on IC-related products and equipment, as well as limitations on AI chip usage.
• Recent Sanctions: U.S. added 23 Chinese companies to its export control list for alleged support of SMIC.

These developments underscore the complex and evolving nature of international trade policy, particularly in the high-tech sector. As both countries navigate these challenges, the global semiconductor landscape continues to shift, with significant consequences for innovation, supply chains, and economic stability.