How does China view the U.S. actions?

China's state-run media outlet Xinhua has condemned the U.S. practice as the "instincts of a surveillance empire," accusing the U.S. of running "the world's most sprawling intelligence apparatus."

What is the context behind the U.S.-China tensions over chip trade?

The two superpowers have been engaged in a technological rivalry, leading the U.S. to tighten restrictions on advanced chip exports to China in recent years.

Home / Technology / U.S. Accused of Turning Chip Trade into Surveillance Game

U.S. Accused of Turning Chip Trade into Surveillance Game

Q: What is the U.S. accused of doing with chip shipments to China?

The U.S. is accused of secretly placing location tracking devices in targeted shipments of advanced computer chips destined for China.

15 Aug

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Summary

U.S. secretly placed location trackers in chip shipments to China
China calls it "instincts of a surveillance empire"
U.S. tightened chip export restrictions amid tech rivalry with China

U.S. Accused of Turning Chip Trade into Surveillance Game

According to a news report published on August 15, 2025, the United States has been secretly placing location tracking devices in targeted shipments of advanced computer chips destined for China. This practice, which the U.S. government has not officially confirmed, has drawn strong criticism from China's state-run media.

In a commentary published on the same day, China's Xinhua news agency accused the U.S. of running "the world's most sprawling intelligence apparatus" and turning the chip trade into a "surveillance game." The article claims that the U.S. sees its trading partners as "rivals to be tripped up or taken down," and warns that if American chips are perceived as "Trojan horses for surveillance," customers will seek alternatives.

The ongoing tensions between the U.S. and China over technological supremacy have led to a series of export restrictions on advanced chips and related technologies in recent years. The Biden administration has also targeted Chinese-made telecommunications equipment and vehicles, citing national security concerns.

China's cyberspace regulator has also raised questions about potential security risks posed by certain U.S. chipmakers, further escalating the technological rivalry between the two global powers.

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