China–USA trade dispute at the WTO on US chip export control measures
China has filed a trade dispute at the WTO against the US chip export control measures, warning of potential disruption to global supply chains. The arbitration process may face hurdles due to a lack of new judges, making a resolution unlikely. Despite this, China’s action holds symbolic significance in the ongoing chip war between the two countries.
China initiated a trade dispute procedure against the US chip export control measures arguing that these measures ‘threatened the stability of the global industry supply chains’.
The WTO process will start with requests for consultations. However, any resolution is not likely as the WTO’s arbitration body has been dysfunctional due to the US blocking the appointment of new judges. The WTO’s arbitration mechanisms are not likely to be de-blocked.
Thus, China’s move has more of a symbolic relevance in the ongoing ‘chip war’ between the two countries.
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