China Probes U.S. Chip Controls in Trade Standoff Over Tech Dominance

China has initiated investigations targeting the U.S. semiconductor sector, signaling a shift in its broader economic and trade strategy. The move follows escalating tensions and a series of high-level bilateral talks aimed at addressing trade disputes, export restrictions, and digital technology concerns. These investigations are expected to scrutinize U.S. export controls and their impact on Chinese technology firms, particularly in the semiconductor and AI industries. The U.S. has imposed stringent export controls on China in recent years, citing national security concerns. These measures have extended beyond specific integrated circuits to nearly the entire supply chain, affecting manufacturing, outsourcing, and software. China's stance is clear and consistent: it seeks to protect the legitimate rights and interests of its enterprises while ensuring that such measures comply with international trade norms and multilateral agreements. The recent addition of over 20 Chinese entities to the U.S. Entity List by the Bureau of Industry and Security (BIS) has further intensified the scrutiny. This action, which targets sectors including semiconductors, biotech, aerospace, and commercial trade and logistics, underscores the growing friction in the U.S.-China economic and trade relationship. In response, the Chinese Ministry of Commerce has pledged to take necessary measures to safeguard the interests of Chinese businesses. The U.S. has long criticized China for global overcapacity in sectors like steel and aluminum, as well as its purchase of sanctioned Iranian oil. During the latest round of talks in Stockholm, U.S. officials also raised concerns about the sale of dual-use technologies to Russia. Despite these issues, the overall tone of the discussions has been constructive, with both sides expressing a commitment to enhancing cooperation and reducing misunderstandings. The upcoming talks in Spain, the fourth round in four months, will focus on resolving outstanding issues related to tariffs, export controls, and TikTok. These negotiations are part of a broader effort to establish a stable and sustainable framework for U.S.-China economic and trade relations. China has emphasized the importance of an open, fair, and non-discriminatory business environment for its companies, including TikTok, which has faced significant regulatory challenges in the U.S. The Chinese government has reiterated its commitment to protecting data privacy and security, stating that it has never requested, nor will it request, any enterprise or individual to collect or provide data located abroad to the Chinese government in violation of local laws. As the two sides prepare to engage in these critical discussions, the outcomes will have significant implications for global trade dynamics, particularly in the technology sector. The resolution of these issues will require sustained dialogue and a willingness to find mutually acceptable solutions that align with the interests of both nations. With the global supply chain increasingly interdependent, the success of these talks could set a precedent for future economic cooperation and conflict resolution between major global powers.