China Launches WTO Dispute against U.S. Chip Sanctions

Beijing’s commerce ministry issued a statement late Monday accusing Washington of endangering global supply chains by restricting chip exports and announcing that China had launched a dispute with the World Trade Organization over US chip sanctions.

The US imposed new export curbs in October aimed at limiting China’s ability to buy and manufacture high-end chips with military applications, hampering Beijing’s effort to establish its own semiconductor sector and advanced military systems.

As part of these sanctions, exports of certain chips used in supercomputing are being restricted.

The goal, as stated by the US Commerce Department in October, is to prevent “sensitive technologies with military applications” from falling into the hands of China’s military, intelligence, and security services.

On the other hand, China’s Ministry of Commerce blasted the United States for “obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain” and for engaging in “protectionist practices” in violation of international trade rules.

The ministry also stated in its statement that China’s WTO dispute was initiated to protect the country’s “legitimate rights and interests,” and it urged the US to “give up zero-sum thinking.”