China launches investigation into US sanctions

China launches investigation into US sanctions

China’s Ministry of Commerce has launched an anti-discrimination investigation into US tariffs and export controls on exports of integrated circuits to China. The investigation will assess whether US tariffs, export controls, and accompanying guidance on AI chips and integrated circuits constituted discriminatory measures against China. The legal basis for the investigation is Articles 7 and 37 of the Foreign Trade Act 2004. If the investigation finds that the US measures were discriminatory, China can take ‘appropriate foreign trade relief measures’ under Article 40 of the 2004 Act.

The investigation is due to last for 3 months, beginning 13 September 2025. The Ministry of Commerce has invited interested parties to submit comments. The Ministry of Commerce said the investigation was in response to US tariff and export control measures on integrated circuit shipments to China, including recent US guidance on AI chip export controls.

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