China has announced that it has filed a case at the World Trade Organization (WTO) against the United States over its restrictions on semiconductor exports, accusing Washington of endangering global supply chains.
In October, the United States became on behalf 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 complicate Beijing’s development of its own semiconductor industry. The latter is 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.
The Chinese Ministry of Commerce accused Washington of Monday evening, December 12 “impede the normal international trade of goods, including chips, and threaten the stability of the global industrial supply chain”. The United States violates international trade rules and engages in “protectionist practice” and the procedure in the WTO aims to protect “legitimate rights and interests” of China, he said in a statement.
There are many disputes between the two countries: imbalance in trade relations, the situation in Hong Kong, US relations with Taiwan, human rights and even 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 semiconductor announcement in October, the US Department of Defense blacklisted 13 new Chinese companies, citing their alleged ties to their country’s armed forces. World leader in drones, DJI was the best known of the companies targeted.