China Files WTO Complaint Against US Semiconductor Export Controls: "Trade Obstruction and Supply Chain Threat"

[Asia Economy Reporter Jeong Hyunjin] China has filed a lawsuit against the United States' semiconductor export controls on China with the World Trade Organization (WTO) dispute settlement procedure, Bloomberg News reported on the 12th (local time), citing the Chinese Ministry of Commerce.

According to the report, the Chinese Ministry of Commerce stated in a press release that "China's WTO lawsuit is a legitimate means to address China's concerns and a necessary measure to protect China's legitimate rights and interests."

[Image source=AP Yonhap News]

The Chinese Ministry of Commerce pointed out that "the United States is abusing export controls by expanding the concept of security." It also accused the U.S. of "disrupting the normal international trade of semiconductors and threatening the stability of the global supply chain," calling it a "typical protectionist tactic."

The United States announced semiconductor export controls on China last October. The measures effectively ban the export to China of certain semiconductors used in high-performance semiconductor manufacturing equipment above a certain level, artificial intelligence (AI)-related semiconductors, and supercomputers. The Chinese government has strongly opposed these measures, arguing that they violate the principles of fair competition and international economic and trade rules.

According to Bloomberg, with China officially filing this measure with the WTO, the U.S. must engage in consultations to resolve the issue within the next 60 days. If the problem is not resolved during this process, China can request the establishment of a panel for dispute resolution at the WTO. Bloomberg noted that "the WTO dispute settlement process can take years," and "even if China wins in this process, the U.S. can appeal again, effectively exercising a veto."

In fact, the WTO dispute settlement panel recently ruled that the United States violated WTO rules by imposing high tariffs on steel and aluminum produced in China and the European Union (EU) in 2018 to protect its domestic steel industry. China welcomed the ruling as an "objective and fair judgment," but the U.S. strongly rejected the "incorrect interpretation and decision," maintaining its stance to keep the tariffs.

This content was produced with the assistance of AI translation services.