China Sues US Over Chip Ban

By Staff, Agencies

China has filed a formal complaint with the World Trade Organization [WTO] over chip export curbs recently imposed by the US, China’s Commerce Ministry said on Monday.

According to the statement, Washington’s export control measures threaten the interests of Chinese companies.

“China filed a lawsuit within the WTO framework as a necessary way to address our concerns through legal means and to defend our legitimate rights and interests,” the ministry said in a statement.

It added that Washington’s ban also undermines the stability of global industrial supply chains.

“The US has been… abusing export control measures, obstructing normal international trade in products such as chips, undermining the international economic and trade order… which is a typical trade protectionist practice.”

The US Department of Commerce passed a new set of export controls on semiconductors in early October. They were designed to prevent China from obtaining high-end US technology that could be used for military purposes. China repeatedly called the measures unfair and warned they may backfire on US companies.

Washington acknowledged the receipt of a “request for consultations” from Beijing within the WTO, which is the first step to resolve any trade dispute within the organization. However, it considers the export controls in question a matter of national security, and that “the WTO is not the appropriate forum to discuss issues related to national security,” Adam Hodge, spokesman for the Office of the US Trade Representative, said in an emailed statement to Reuters.