China Launches WTO Trade Dispute Against US Chip Export Measures

photo credit: East Asia Forum

According to its commerce ministry, China has just launched a trade dispute at the World Trade Organization against the United States over its chip export control measures.

In October, The United States of America passed a sweeping set of regulations aimed at handicapping China’s semiconductor industry.

This action has prompted complaints from a top China trade group.

In a statement by China’s commerce ministry which stated, “China takes legal actions within the WTO framework as a necessary way to address our concerns and to defend our legitimate interests”.

The U.S. curbs “threatened the stability of the global industrial supply chains,” the statement added.

The so-called request for consultations is the first step in a long procedure at the global trade body.

However, US has blocked appointments to the WTO’s top ruling body on trade disputes, meaning some rows never get settled.

China’s complaint on U.S. chip export curbs comes days after a WTO ruling against Washington in a separate suit about metal tariffs that had been brought by China among others. For the record, US rejected the WTO’s findings. For years, US has been a regular critic of the WTO’s arbitration proceedings

“We have received a request for consultations from China related to certain U.S. actions affecting semiconductors,” spokesperson for U.S. Trade Representative’s office, Adam Hodge said.

“As we have already communicated to the PRC, these targeted actions relate to national security, and the WTO is not the appropriate forum to discuss issues related to national security,” Hodge was quoted as saying in an email.

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