New York (CNBC) - China’s government filed a dispute at the World Trade Organization (WTO) against the U.S. over export controls that restrict the ability of Chinese firms to make advanced semiconductors, build and maintain supercomputers, and obtain high-end computer chips that could have military applications.
China claims that the U.S. policies violate the WTO’s General Agreement on Tariffs and Trade (GATT) in addition to agreements on trade-related investment, intellectual property rights and trade in services. The Chinese government said the U.S. export controls “threatened the stability of the global industrial supply chains.”
The U.S. implemented the new export controls in early October for semiconductors, supercomputers and related computing data-x-items through a pair of rules put forward by the Commerce Department’s Bureau of Industry and Security (BIS). The export restrictions apply to data-x-items used by China to improve military technologies ranging from autonomous drones to weapons of mass destruction; to increase its speed and accuracy of logistics and planning systems; to commit human rights abuses.
Export licenses requested by entities linked to the Chinese government face a “presumption of denial” under the restrictions, while those filed by multinational firms are determined on a case-by-case basis.
The BIS rules from October also updated the list of Chinese firms that are barred from receiving sensitive exports because of their links to the Chinese military or because they haven’t allowed verification checks on the end use of products to go forward.
In announcing the export restrictions this fall, Under Secretary of Commerce for Industry and Security Alan Estevez said that BIS is “appropriately doing everything in our power to protect our national security and prevent sensitive technologies with military applications from being acquired by the People’s Republic of China’s military, intelligence, and security services.”
The Office of the U.S. Trade Representative did not respond to a request for comment on China lodging the dispute against the U.S. over these export controls at the WTO. In a separate announcement Thursday, the BIS added 36 entities to its export restriction lists, most of which are located in China.