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China obtains WTO case against the U.S. and its sweeping chip export curbs as tech worries escalate


December 15, 2022: –China initiated a dispute which is against the U.S. at the World Trade Organization regarding Washington’s sweeping semiconductor transfer curbs that can cut the world’s second-largest economy from high-tech components.

In October, the U.S. introduced laws restricting chips made using American tools from being shipped to China and any semiconductors designed for artificial intelligence apps. The move has kneecapped the semiconductor industry of China.

The Chinese Ministry of Commerce is now confirming the trade dispute on Monday. It accused the U.S. of abusing to remove control measures and obstructing average international trade in chips and different products.

It added that the WTO dispute is a way to address concerns through legal means.

Washington is looked after, and its export restrictions are in the interest of national security.

China’s dispute on chips comes days following the WTO ruled that tariffs set by retired President Donald Trump on steel and aluminium imports violated global trade rules. China was among the countries that brought an action against the U.S.

Trade disputes through the WTO can take years to resolve. China has taken the initial step, known as a request for consultations. The WTO has provisions in its rules that permit countries to impose restrictions in the interest of national security. This is making it harder for China to win this dispute.

“If this is the answer to the export controls, it stated that China has limited ways,” Pranay Kotasthane, chairperson of the high-tech geopolitics program at the Takshashila Institution, tweeted.

“Given that WTO has exceptions for the security concerns, which can be defined, it’s unlikely to result in any policy changes.”

On Monday, the person known to the matter, Adam Hodge, told Reuters that the U.S. has been getting the request for consultations from China regarding the semiconductor putting restrictions.

“As we have communicated to the PRC, targetting actions related to national security and the WTO is not the proper forum to discuss issues linked to national security,” Hodge said.

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China obtains WTO case against the U.S. and its sweeping chip export curbs as tech worries escalate