Home » News » Tech battle: China hits out at US Chips Act subsidies at WTO as tensions shore up

Tech battle: China hits out at US Chips Act subsidies at WTO as tensions shore up

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Tech battle: China hits out at US Chips Act subsidies at WTO as tensions shore up-GadgetAny
US Chips Act

Image credit : CNBC

Beijing has criticized US efforts to strengthen its semiconductor industry through subsidies under the Chips and Science Act once more, claiming that such measures display a “Cold War mentality” and seriously disrupt the global chip supply chain.

At a regular meeting of the Committee on Subsidies and Countervailing Measures of the World Trade Organization on Wednesday, a Chinese representative criticized recent US actions, according to Chinese state-run news agency Xinhua.

The US President Joe Biden signed the Chips and Science Act into law in August of last year, allocating US$53 billion to support domestic semiconductor manufacture and research. Beijing views this legislation as an attempt by Washington to impede China’s technological development.

US Chips Act
Image credit : SPIE

According to Xinhua, the representative claimed that such industry subsidies enable the US to “interfere with the allocation of market resources” and demonstrate how the US uses “double standards” in this regard by being strict with others while being forgiving of itself.

The Chinese representative was quoted by Xinhua as saying that the US chip industry subsidies and export control policies together have “severely disrupted the global semiconductor supply chain” and displayed Washington’s “Cold War mentality and hegemonic behaviors,” harming both China and the US as well as its allies.

According to a rumored January deal, the US, Japan, and the Netherlands are taking steps to limit the transfer of specific cutting-edge chip-making equipment to China, which would thwart Beijing’s plans to strengthen domestic semiconductor production.

Beijing demanded on Wednesday that the WTO step up its “supervision” of US activities that are against WTO regulations.

The intensifying protests in Beijing highlight the growing disparity between China and the US in semiconductor supply chains and could signal additional steps taken by the US to restrain China’s chip sector growth.

US China Chip War
Image credit : Asia Times

In March, the Netherlands committed to working with the US to reduce sophisticated chip and equipment exports to China. Japan also said in March that it will require a number of Japanese businesses, including top producer of equipment for semiconductor manufacture Tokyo Electron, to apply for permits before sending 23 different types of cutting-edge chip-making instruments to China.

Also read : China resorts to AI to gain military dominance in future wars

China’s state-backed semiconductor trade association, the China Semiconductor Industry Association (CSIA), warned last week that Japan’s recent decision to tighten export controls on advanced chip-making technology would “bring even greater uncertainties” to the global chip industry. The CSIA urged the Chinese government to take “resolute countermeasures” in response.

Awanish Kumar

By Awanish Kumar

I keep abreast of the latest technological developments to bring you unfiltered information about gadgets.

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