China has applied to the World Trade Organization to sue the United States over export controls imposed on Chinese companies in the chip sector.
In a statement made by the Chinese Ministry of Commerce, it was stated that the regulations restricting the export of semiconductors and other high-tech products are “a typical practice of protectionism” and that an official application was made to the Dispute Settlement Body (DRB) of the WTO General Council to file a lawsuit against the US.
“In recent years, the US has been abusing export controls by overstretching the concept of national security and preventing normal international trade in chips and other technology products. This attitude threatens the stability of global industry and supply chains and harms global peace and development by violating international economic and trade rules.”
STEPS FROM THE USA TO REDUCE THE INFLUENCE OF BEIJING
With the Chip and Science Act, which was approved and entered into force in August, the Washington administration announced that it would provide financial support and tax breaks to companies that would establish production facilities in order to develop the production of semiconductors in the country.
The law’s stipulation that companies wishing to benefit from the incentives must not improve the technological capacity of their production facilities in China was interpreted as a sign of Beijing’s aim to limit its influence in this field.
On the other hand, the US Department of Commerce announced in early October that 31 companies and institutions, including China’s largest memory chip manufacturer Yangzte Memory Technologies and the largest semiconductor hardware manufacturer Naura Technology Group, were placed on the Export Control List.
The Ministry had also imposed a license requirement on American companies to export materials, machinery and equipment needed for chip production to China.
