China starts WTO dispute against US chip export curbs

China starts WTO dispute against US chip export curbs

Rules aimed at harming its semiconductor industry threaten supply chain stability.

GENEVA:
China has launched a trade dispute at the World Trade Organization against the US over its chip export control measures, China’s commerce ministry said.

The US passed a sweeping set of regulations in October aimed at kneecapping China’s semiconductor industry, prompting a complaint from a top China trade group.

“China takes legal actions within the WTO framework as a necessary way to address our concerns and to defend our legitimate interests,” said a statement by China’s commerce ministry, its diplomatic mission in Geneva relayed.

It added that the US curbs “threatened the stability of the global industrial supply chains”.

The office of the US Trade Representative did not immediately respond to Reuters requests for comment. A WTO spokesperson declined to comment.

The so-called request for consultations is the first step in a long procedure at the global trade body. The US has blocked appointments to the WTO’s top ruling body on trade disputes, meaning some rows never get settled.

China’s complaint on US 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. The US, a regular critic of the WTO’s arbitration proceedings, rejected the WTO’s findings.

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