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China files WTO suit against US over chip export controls, saying policy is ‘trade protectionism’

  • Beijing’s complaint filed with dispute-settlement body accuses Washington of overstretching ‘notion of national security’ and hindering normal trade
  • Move comes as US seeks allies’ backing of restrictions and as Taiwanese chips giant deepens investment in Arizona

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US President Joe Biden speaks at a ceremony celebrating construction of a Taiwan Semiconductor Manufacturing Co factory in Phoenix, Arizona, on Tuesday. Photo: Kyodo
Beijing has taken formal action to challenge new US restrictions on semiconductors and other hi-tech exports to Chinese companies by filing a suit at the World Trade Organization, as Washington presses ahead with efforts to remove China from the international technology supply chain.

Beijing filed its complaint with the WTO’s dispute-settlement body on Monday, according to a statement issued by China’s Ministry of Commerce on December 12.

The ministry accused the US of taking “a typical practice of trade protectionism” in curbing the export of chip products to China on security grounds.

“In recent years, the US side has continuously overstretched the notion of national security, abused export control measures, [and] hindered the normal international trade of chips and other products,” the statement read.

TSMC’s latest project in Arizona follows major customers urging the Taiwanese chip maker to build more advanced semiconductors in the US. Photo: Bloomberg
TSMC’s latest project in Arizona follows major customers urging the Taiwanese chip maker to build more advanced semiconductors in the US. Photo: Bloomberg

“[That] threatened the stability of global supply chains and industrial chains, undermined the international economic and trade order, violated international economic and trade rules, defied basic economic laws, and harmed the interests of global peace and development.”

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