China initiated a dispute against the U.S. at the World Trade Organization over Washington’s sweeping semiconductor export curbs that look to cut the world’s second-largest economy off from high-tech components.
In October, the U.S. introduced rules that restricted chips made using American tools from being exported to China as well as any semiconductors designed for artificial intelligence applications. The move has effectively kneecapped China’s semiconductor industry.
The Chinese Ministry of Commerce confirmed the trade dispute in a statement Monday and accused the U.S. of abusing export control measures and obstructing normal international trade in chips and other products.
It said that the WTO dispute is a way to address China’s concerns through legal means.
Washington has maintained that its export restrictions are in the interest of national security.
China’s dispute on chips comes days after the WTO ruled that tariffs imposed by former President Donald Trump steel and aluminum imports violated global trade rules. China was among the countries that brought action against the U.S.
