Beijing Launches WTO Dispute Over US Chip Ban To China

China has filed a dispute with the World Trade Organisation over US restrictions on chip exports, according to a statement issued by Beijing's commerce ministry late Monday, accusing Washington of endangering global supply chains.

The United States announced new export controls in October aimed at limiting China's ability to buy and manufacture high-end chips with military applications, complicating Beijing's push to develop its own semiconductor industry and advanced military systems.

Export restrictions on some supercomputer chips and stricter requirements for the sale of semiconductor equipment are among the changes.

According to the US Commerce Department, the goal is to prevent “sensitive technologies with military applications” from being acquired by China's military, intelligence and security services.

However, China's Ministry of Commerce accused the US on Monday of “obstructing normal international trade in products such as chips and endangering the stability of the global industrial supply chain,” violating international trade rules and engaging in “protectionist practises.”

The WTO dispute is intended to protect China's “legitimate rights and interests,” according to the ministry's statement, which urges Washington to “give up zero-sum thinking.”

The two superpowers have long clashed over technology, trade, Hong Kong, Taiwan and human rights issues.

At a summit, last month in Bali, Indonesia, Chinese President Xi Jinping and US President Joe Biden pledged to mend strained relations.

The Pentagon added 13 more Chinese firms to a blacklist of military-linked entities just days before the latest chip controls, including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology.