China Urges WTO to Review US-Dutch-Japanese Chip Control Pact

China has asked the World Trade Organization to review semiconductor export controls recently announced by Japan, saying the “harmful” measures violate WTO rules. Beijing also lodged a broader complaint against the reported chip control deal agreed to by the U.S., the Netherlands and Japan, saying it should be made public and scrutinized by WTO members.

Japan’s new export control measures, announced last week, “are essentially harmful acts against China under the coercion of individual countries,” according to an unofficial translation of an April 4 Commerce Ministry press release. The restrictions will “not only damage the legitimate rights and interests of Chinese companies,” but they will also lead to “losses” for Japanese companies, it said, adding that China is the “largest export destination of Japanese semiconductor manufacturing equipment.”

Japan’s announcement last week didn’t specifically mention China, and the government said it’s soliciting public comments on the restrictions before they take effect in July (see 2303310031). “We hope that Japan will listen to rational voices,” the Chinese ministry spokesperson said, and “work with all parties to maintain the stability of the global semiconductor industry chain.” If Japan “insists on artificially obstructing the cooperation in the semiconductor industry between China and Japan, China will take decisive measures to resolutely safeguard its legitimate rights and interests.”

China’s complaint came after the country officially requested WTO dispute consultations with the U.S. in December over American chip export controls announced in October (see 2212160022). The Netherlands also has said it plans to impose new export controls on advanced semiconductor production equipment, a move the U.S. hopes will align it more closely with its own restrictions (see 2303090032)

During a two-day meeting of the WTO’s Council for Trade in Goods held this week, Chinese representatives urged the body to “scrutinize” the private pact between the U.S., the Netherlands and Japan, which is aimed at tightening the trio’s chip control rules for sensitive goods destined to China. “Relevant players may have realized that the agreement adamantly violates WTO rules, so they deliberately kept the content of the agreement low-profile,” a Chinese official told the council, state broadcaster CCTV reported April 5, according to a report in the Chinese tabloid Global Times.