China on Monday sued the United States through the World Trade Organization (WTO) dispute settlement mechanism over its chip export controls.
The U.S. passed a massive chip funding bill in July that pours $52.7 billion into domestic chip manufacturing. The bill aims to restrict China’s semiconductor development through subsidies and bans on so-called “national security” grounds.
“The U.S. has repeatedly generalized the concept of national security in recent years, abused export control measures, and hindered the normal international trade of chips and other products. This is a typical trade protectionist approach,” a spokesperson for China’s Ministry of Commerce (MOFCOM) said in a statement.
China’s filing of a lawsuit at the WTO is intended to defend its legitimate rights and interests through legal means, the spokesperson said.
Semiconductors are the world’s fourth most traded product, just after crude oil, refined oil and cars, according to Boston Consulting Group. Its supply chain is highly global, with Chinese and American enterprises deeply integrated.
China hopes the U.S. will abandon its zero-sum bias and stop disrupting the trade of high-tech products, including chips, the statement added.
Separately, the WTO ruled last week that the 2018 U.S. tariffs on steel and aluminum imports violated global trading rules.
In March 2018, then-U.S. President Donald Trump slapped tariffs of 25 percent on steel imports and 10 percent on aluminum imports, citing national security concerns. Multiple countries, including China, lodged complaints with the WTO over the decision.
“China applauded the objective and fair ruling by a WTO expert panel,” an MOFCOM spokesperson said Saturday. “Facts have proved that the WTO security exception clause is not a safe haven for unilateralism and protectionism.”
The Chinese Embassy in Britain on Monday expressed strong opposition to the recent remarks made about China by Britain’s Secretary of State for Foreign, Commonwealth and Development Affairs James Cleverly.
Cleverly said in an interview recently that China is an incredibly challenging country on the international stage, and that China’s behavior is “unacceptable” on affairs related to Xinjiang and Hong Kong.
“The remarks by the British side are a distortion of the facts and slander against China,” the embassy’s spokesperson responded in a statement published on the Chinese embassy’s website
The spokesperson stressed China has always respected the sovereignty of other countries and opposed interference in other countries’ internal affairs; upheld peace and stability and rejected war and turmoil; stood for dialogue and cooperation and opposed confrontation and rivalry; and advocated multilateralism and stood against unilateralism.
“In contrast, the UK and the U.S. frequently interfere in the internal affairs of other countries, create conflicts and frictions across the world, and practice double standard in international affairs. Who is challenging and undermining the international order? The international community has a fair judgment,” the statement read.
Noting affairs related to Xinjiang and Hong Kong are purely China’s internal affairs, the spokesperson said the British side has no right to make irresponsible remarks.
The Chinese government’s policies on Xinjiang and Hong Kong are conducive to safeguarding human rights, promoting development, and achieving long-term peace and stability, the spokesperson said, adding that no one can stop the Chinese people from running our country according to our own will.
The Chinese embassy urged the UK side to abandon ideological prejudice, respect the facts, and keep pace with the times. “The UK should stop lecturing others, stop pointing fingers at other countries, and stop interfering in China’s internal affairs.”
Only by following the principles of mutual respect, equality and mutual benefit can China-UK relations develop in a healthy manner, the spokesperson added.
