Xinhua Calls U.S. ‘Surveillance Empire’ Over Covert Trackers in Chip Shipments

China’s official news agency Xinhua accused the United States of acting like a “surveillance empire” after reports that U.S. authorities secretly embedded location-tracking devices in certain shipments of advanced semiconductor chips bound for third countries but deemed at risk of being diverted to China. In a commentary titled “America turns chip trade into a surveillance game,” Xinhua said the practice showed Washington views trading partners as rivals to be undermined and warned that buyers could shun U.S.-made semiconductors if they are perceived as Trojan horses. The editorial follows a Reuters report earlier in the week revealing the covert tracking program, introduced as part of broader U.S. export controls aimed at limiting China’s access to cutting-edge chips. The exchange adds to rising tensions in the technology supply chain. Washington has steadily tightened curbs on shipments of advanced chips and manufacturing equipment to China, while Beijing has increased scrutiny of U.S. technology firms and raised questions about potential security risks in foreign-made components.