China wants WTO clarification on US-Netherlands chip deals

China has asked the Netherlands, Japan and the United States for an explanation on the agreement it reached on export controls for chip technology. The Chinese government wants the three countries to report the agreements to the World Trade Organization (WTO) so that an international free trade arbitrator can examine them.

Last month, the Cabinet confirmed that chip machine maker ASML has imposed additional restrictions on exports of high-end equipment to China. Japan recently announced that many chip companies from the country must first apply for a license to sell advanced products abroad, which also means restrictions on exports to China.

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The announcements came after a meeting of Dutch, Japanese and US government representatives in Washington in January, where the countries agreed not to sell certain technologies to China, sources told Bloomberg News.

‘Technological dominance’

According to China, the agreements “undermine the WTO’s principles of justice and transparency,” state broadcaster CCTV reported. The country accused the US of pursuing “technological hegemony” and called on the Netherlands not to go along with it.

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President Joe Biden’s administration has already taken steps to prevent China from developing more advanced semiconductors by the fall of 2022. This will be essential for national and international security as these high quality chips can be used for military purposes as well. China says those security concerns are unfounded.