China Opens Anti-Dumping Investigation Into Chip Trade With USA, Causing Rally In Domestic Semiconductor Stocks

Chinese chipmaking stocks mostly advanced Monday (15 September) after Beijing launched probes last week into U.S. trade practices over potential discrimination and dumping, reported Investing.com.

China opened two investigations: one examining whether Washington discriminates against Chinese companies in its chip trade and policies, and another into the suspected dumping of imports, including analog chips used in hearing aids, automobiles, and Wi-Fi routers. Investors welcomed the probes, anticipating that Beijing may introduce measures to boost locally made chips.

Semiconductor Manufacturing International Corp (HK:0981), China’s largest chipmaker by volume, rose 1.4 per cent in Hong Kong trading. Peer Hua Hong Semiconductor Ltd (HK:1347) jumped 3.7 per cent, while NAURA Technology Group Co Ltd (SZ:002371) added 0.8 per cent. Chip testing equipment maker JCET Group Co Ltd (SS:600584) increased 0.4 per cent.

The Beijing probe followed the U.S. adding 32 entities—23 Chinese—to a restricted trade list, accusing two firms of sourcing equipment for SMIC, sanctioned by Washington. The development coincided with high-level U.S.-China trade talks Sunday, which also addressed TikTok’s potential U.S. ban.

Chinese chip stocks have rallied since early August, supported by regulatory scrutiny of U.S.-made chips and reports that AI leaders such as Alibaba Group (HK:9988) are testing locally sourced chips.

Bernstein analysts said, Chinese scrutiny towards dumping by U.S. chipmakers could result in "significant anti-dumping tariffs for analog products produced in U.S. and shipped to China.”

They noted such tariffs would benefit local developers and non-U.S. firms like Taiwan’s Silergy Corp, Japan’s Renesas Electronics, and Germany’s Infineon Technologies, while hurting U.S. firms including Texas Instruments, Analog Devices, and NXP Semiconductors.

A 2013 anti-dumping probe on solar-grade polysilicon, they added, boosted China’s local production and dominance.

China’s push for AI chip self-reliance has intensified in response to U.S. restrictions on key technologies.

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