China has filed a World Trade Organisation (WTO) case against the US for its restrictions on semiconductor exports, accusing Washington of jeopardising global supply chains.
In October, the US, in the name of “national security”, announced new export controls aimed at limiting Beijing’s ability to buy and manufacture high-end chips “used in military applications”. Washington’s ambition was to make it harder for Beijing to develop its own semiconductor industry.
Semiconductors are the subject of a fierce battle between the two economic powers for technological dominance. The US regularly accuses China of industrial espionage and threats to its national security.
China’s Commerce Ministry on Monday night accused Washington of “obstructing normal international trade in goods, including chips, and threatening the stability of the global industrial supply chain. The US is violating international trade rules, engaging in “protectionist practices” and the WTO proceedings are aimed at protecting China’s “legitimate rights and interests”, it said in a statement.
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Disputes between the two countries are numerous: imbalance in trade relations, the situation in Hong Kong, US relations with Taiwan, human rights and technological rivalry. At a G20 summit in Bali, Indonesia in November, Chinese President Xi Jinping and US President Joe Biden pledged to improve bilateral relations.
Days before the US announcement on semiconductors in October, the US Department of Defense blacklisted 13 new Chinese companies for their alleged links to their country’s armed forces. World leader in drones, DJI was the best-known of the targeted companies.
