China and the US Clash Over Chips Before Big Meeting

China has initiated two significant investigations into US chip policies. One focuses on potential unfair treatment of Chinese companies, while the other examines whether the US is selling chips in China at excessively low prices. These actions come just before crucial high-level talks between the two nations in Spain.

China Accuses US of Stifling Tech Growth

China alleges that the US has imposed numerous restrictions on Chinese chip companies, aiming to hinder China's advancements in AI and advanced computing. The Chinese government demands that the US cease these practices and is prepared to take measures to protect its companies.

A Chinese delegation, led by Vice Premier He Lifeng, will meet with US officials in Madrid from September 14-17. Key topics of discussion include US tariffs, export controls, and TikTok. China questions the rationale behind the US's recent sanctions on Chinese firms.

Recent US Sanctions and Trade Restrictions

The US recently added 32 entities to its restricted trade list, including 23 in China. Two Chinese companies were accused of obtaining US chipmaking equipment for China's leading chipmaker, SMIC.

Fourth High-Level Meeting This Year

The upcoming talks in Spain mark the fourth major meeting between the US and China in 2024. Both countries aim to maintain a trade truce that has led to reduced tariffs and the resumption of rare earth mineral flows. Following meetings in Geneva, London, and Stockholm, they agreed to extend a tariff pause until November 10.

TikTok at the Center of Discussions

TikTok will also be a focal point in the Spain talks. The US insists that TikTok must be owned by American entities or face a potential ban, citing concerns that user data could be accessed by the Chinese government. China maintains that it respects data privacy and does not compel companies to surrender foreign data.

China's Stance on Future Actions

China has warned that if the US continues to harm Chinese companies, it will take steps to safeguard its interests and businesses.