China and the U.S. Convene Trade Talks in Madrid to Address Tariffs, Export Controls, and TikTok

On September 14 in Madrid, delegations from China and the United States met to discuss bilateral trade issues, focusing on U.S. unilateral tariff measures, the alleged abuse of export controls, and the TikTok platform. These talks followed the U.S. Department of Commerce’s September 12 announcement adding multiple Chinese entities to its export-control Entity List, a move Beijing has denounced as an overextension of national security claims.

A spokesperson for China’s Ministry of Commerce condemned Washington’s expansion of export restrictions on sectors including semiconductors, biotechnology, aerospace, and logistics. Highlighting the incongruity of imposing new sanctions days before high-level negotiations, the spokesperson announced two inquiries: an anti-discrimination probe into U.S. measures targeting China’s integrated circuit industry and an anti-dumping investigation into analog chips imported from the United States. Industry analysts observe that while the U.S. restricts advanced chip exports to China, it simultaneously floods the market with low-cost analog components, applying a dual-track approach that undercuts Chinese technology advancement.

Madrid was chosen as the venue following previous rounds in Geneva, London, and Stockholm, signaling Spain’s growing role as a strategic site for sensitive international dialogue. Spanish Foreign Minister José Manuel Albares personally welcomed both delegations, and local media reported significant interest, viewing the meeting as confirmation of Spain’s elevated diplomatic standing. Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent led their respective teams, underscoring the high level of participation.

Observers note that these discussions aim to extend the 90-day tariff truce agreed on August 12, which remains in effect until November. U.S. tariffs have contributed to domestic inflationary pressures, and the Federal Reserve is widely expected to cut interest rates shortly, a move that may further influence price trends. Both sides confirmed that TikTok would be on the agenda, marking its first inclusion in the series of bilateral economic consultations.

On the eve of the Madrid talks, the U.S. Bureau of Industry and Security added thirty-two entities—twenty-three based in mainland China, including thirteen involved in semiconductors and integrated circuits—to its export-control list. Commentators interpret this as a further tightening of restrictions on the export of advanced chips and manufacturing equipment, notably targeting AI processors from NVIDIA and AMD.

In response, China’s Ministry of Commerce accused the U.S. of unilateralism and market distortion. Invoking Articles 7 and 36 of the Foreign Trade Law of the People’s Republic of China, the ministry launched an anti-discrimination investigation with the option of reciprocal measures after its conclusion. A separate anti-dumping probe will examine imports of general-purpose interface chips and gate driver chips from Texas Instruments, ADI, Broadcom, and onsemi. Preliminary evidence indicates that from 2022 to 2024, imports of these components rose by 37% while prices plunged by 52%, undermining domestic producers.

The investigation process will follow legal procedures, ensuring all stakeholders’ rights and delivering an objective ruling based on the findings. Xiang Ligang, chairman of the Zhongguancun Information Consumption Alliance, noted that analog chips rely on mature semiconductor nodes—an area where Chinese firms have advanced significantly and of which China is the world’s largest consumer. Under sustained low-priced dumping by U.S. companies, domestic analog-chip manufacturers have suffered operational and financial harm.

According to a report by the Jiangsu Semiconductor Industry Association, U.S. analog chips accounted for 47.81%, 53.06%, and 62.14% of China’s related imports in 2022, 2023, and 2024 respectively. As the domestic industry faces genuine damage, Xiang emphasized that a timely anti-dumping investigation and appropriate countermeasures are vital to protect legal industry interests and maintain the stability and security of supply chains.