China sues U.S. for choking off semiconductor industry

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The legal proceedings this month were Beijing's first material response to the chip export controls imposed by the United States in October.

) case against the United States after the Biden administration imposed export controls on its semiconductor industry in October, the Chinese commerce ministry said on Monday., a decision the White House said was taken on national security grounds. The unprecedented intervention sought to retain American primacy in emerging technologies by kneecapping China's advanced chip-makers in the process, industry experts said at the time.

Above, President Joe Biden greets attendees after delivering remarks on his economic plan at Taiwan chip-maker TSMC’s new facility in Phoenix, Arizona, on December 6, 2022. China has launched a World Trade Organization suit against the United States.China is the world's largest producer of commercial electronic devices, but U.S. and allied companies control

Biden officials said the advanced chips, used in everything from supercomputing to artificial intelligence, were powering China'sThe WTO's dispute settlement mechanism could take years to make a ruling, if at all. As part of the first step in the lengthy process, the U.S. now has 60 days to consult with China. If their disagreements aren't resolved, Beijing can request a panel to review the case.

China's decision to challenge American chip export controls came shortly after a WTO ruling against U.S. metal tariffs. The U.S. rejected the verdict, arguing the trade body had"no authority" to arbitrate cases involvingThe World Trade Organization sign is seen at the WTO headquarters in Geneva, Switzerland on December 10, 2019. China's decision to challenge U.S. chip export controls came after a WTO ruling against U.S. metal tariffs.

 

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