China launches WTO dispute over US chip sanctions

The United States in October announced new export controls aimed at restricting China's ability to buy and manufacture high-end chips with military applications, complicating Beijing's push to further its own semiconductor industry and develop advanced military systems.

China launches WTO dispute over US chip sanctions, Source: freepik.com

The moves include export restrictions on some chips used in supercomputing as well as stricter requirements on the sale of semiconductor equipment.

The aim is to prevent "sensitive technologies with military applications" from being acquired by China's military, intelligence and security services, the US Commerce Department said in October.

However, China's foreign ministry claimed Tuesday that the United States has "repeatedly used national security as an excuse to interfere in the normal operation of international trade".

"All countries should stand up and not let Washington's unilateralism and protectionism go unchecked," foreign ministry spokesman Wang Wenbin said at a routine briefing.

"This concerns the stability of the global trade system and more importantly, international justice."

China's Ministry of Commerce on Monday had accused the United States of "obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain", as well as violating international trade rules and engaging in "protectionist practices".

The WTO dispute is intended to defend China's "legitimate rights and interests", the ministry said in its statement, urging Washington to "give up zero-sum thinking".

The two superpowers have long faced off over a range of issues including technology, trade, Hong Kong, Taiwan and human rights.

Chinese leader Xi Jinping and US President Joe Biden pledged to repair frayed relations at a summit in Bali, Indonesia last month.

Days before the latest chip controls, the Pentagon added 13 more Chinese firms including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology to a blacklist of military-linked entities.

Vietnam picking up slack as hub for chips High-tech investment is making a splash in Vietnam’s economic landscape, and so the country is emerging as the destination for semiconductor manufacturers, where local players are seemingly leading the way.

Major ventures on way from chip makers The construction of semiconductor component manufacturing sites is being accelerated, with hopes to offset shortages around the world.