Chinese representative criticises US ‘double standards’ on industry subsidies at WTO meeting.

Beijing accuses the US of adopting a ‘Cold War mentality’ in boosting its semiconductor industry via subsidies under the Chips and Science Act, disrupting the global chip supply chain.

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A Chinese representative has criticised the US’s semiconductor industry subsidies through the Chips and Science Act at a World Trade Organization meeting, calling them a ‘Cold War mentality’ and an attempt to stymie China’s technological progress. The representative further noted that these subsidies allow the US to ‘interfere with the allocation of market resources’ and are an example of ‘double standards.’ Combining these subsidies and export control measures has led to significant disruption in the global semiconductor supply chain.

Recently, Japan and the Netherlands came under criticism from Wang Shouwen, China’s Vice Commerce Minister, as they agreed in January to limit the shipment of chipmaking equipment to China, aligning themselves with the US’s attempts to restrict China’s ability to produce advanced chips. Minister urged Japan to abide by World Trade Organization (WTO) rules to maintain the stability of global supply networks during a meeting with the Japanese ambassador in Beijing. China also initiated WTO dispute proceedings against the US in December 2022.