On September 13, China's Ministry of Commerce (MOFCOM) announced it had launched an anti-discrimination investigation into U.S. measures targeting China's integrated circuit (IC) sector. In recent years, the United States has implemented a series of prohibitions and restrictions against China's IC sector, including export control measures. These protectionist practices are suspected of discriminating against China and constitute the suppression of China's hi-tech industries such as advanced computing chips and AI.

These actions not only undermine China's development interests but also seriously disrupt the stability of the global semiconductor industrial and supply chains. China firmly opposes such practices. The investigation was launched in accordance with Articles 7, 16 and 37 of China's Foreign Trade Law, and China may take corresponding measures against the U.S. based on the investigation's findings, said a MOFCOM spokesperson in a press release.

According to the MOFCOM announcement, the investigation will examine additional tariffs that have been or will be imposed on Chinese products, including ICs, based on U.S. Section 301 investigations since 2018. The investigation will also cover U.S. actions taken since 2022 to restrict exports of IC-related products and manufacturing equipment to China and limit the participation of U.S. persons in China's semiconductor projects.

The probe will look into how the U.S. CHIPS and Science Act of 2022 and related rules are used to restrict companies and individuals from conducting economic, trade and investment activities in related fields in China. In addition, it will cover U.S. government announcements and guidance from May that restrict the use of China's advanced computing ICs, such as Huawei's Ascend chips, and limit U.S. AI chips being used to train Chinese AI models.

The investigation is scheduled to last for three months and may be extended under special circumstances.

China and the U.S. held trade talks in Spain on September 14-17, with topics including U.S. unilateral tariff measures, U.S. abuse of export controls and TikTok. The international community expected the talks to yield positive outcomes. Just before the talks, however, the U.S. Department of Commerce announced on September 12 the addition of multiple Chinese entities to its export control "entity list." This move had a negative impact on the China-U.S. trade talks and exposed Washington's continued intention to curb China's development. China's initiation of an anti-discrimination investigation into measures taken by the U.S. against China in the IC sector can be regarded as a reciprocal countermeasure against the unreasonable move made by the U.S.

Since the U.S. launched its trade war against China in 2018, it has continuously intensified its measures to contain China's development. The U.S. measures, involving technology blockades and market restrictions, have created unfair competition for China's IC industry and constituted serious discrimination against China in technology trade, undermining China's national interests. China had previously hoped to resolve these issues through communication and negotiation. But now China's initiation of an anti-discrimination investigation reflects its disappointment with the U.S. China has no choice but to conduct an anti-discrimination probe to assess the impact of the measures taken by the U.S. on its national interests and adopt response measures based on the results.

The measures taken by the U.S. against China's IC sector have violated World Trade Organization rules. Therefore, China's initiation of an anti-discrimination probe is also to uphold the authority and effectiveness of international trade rules. Through the probe, China aims to oppose U.S. trade discrimination practices and warn against gaining competitive advantages through unfair means, thereby maintaining the fairness of international trade. This move reflects China's consistent stance on international trade, which is to uphold multilateralism, pursue mutually beneficial cooperation and oppose bullying. BR

Copyedited by G.P. Wilson 

Comments to lanxinzhen@cicgamericas.com