Taiwan has asked to join discussions centered on China’s protest against US semiconductor sanctions at the WTO, seeking a voice in a debate that could have ramifications for the global chip industry.
Taipei has formally requested a seat at the table when consultations begin, based on the outsized role it plays in global chipmaking, the government said in a statement filed at the WTO.
China filed a dispute with the WTO in an effort to overturn US-imposed export controls, which aim to limit its ability to develop a domestic semiconductor industry and equip its military.
Photo: Reuters
Beijing accused Washington of economic protectionism, undermining trade rules and jeopardizing the global supply chain.
The US has pressured allies from Seoul to Tokyo to go along with the restrictions on China.
Taipei’s goal in seeking to join the WTO negotiations is to better understand how the dispute might affect global semiconductors, the Office of Trade Negotiations said in a statement yesterday.
Taiwan produces the vast majority of the world’s most advanced semiconductors, and its largest companies, including Taiwan Semiconductor Manufacturing Co (台積電), have abided by the US curbs.
“Taiwan is requesting to join the consultation procedure to understand the supply-demand situation of chips,” the agency said.
The nation has no intention of supporting China’s complaint, nor does the move imply “any dissatisfaction with the United States’ measures,” it added.
US trade officials said they plan to travel to Taipei for trade talks later this month.
Japan and the Netherlands have agreed in principle to join the US in tightening controls over the export of advanced chip tech to China, and they are likely to adopt at least some of the sweeping measures rolled out in October to restrict the sale of equipment to Chinese firms.
However, even if China is successful with its case, the WTO lacks the ability to force the US to reverse its actions. Coupled with domestic economic turmoil, the curbs have hobbled a plethora of China’s biggest chip firms.
China’s semiconductor firms are facing new challenges at home with Beijing now shying away from lavishing them with colossal resources, as was done in the past.
It is pausing massive chip investments as a nationwide COVID-19 resurgence strains the world’s No. 2 economy and Beijing’s finances, and top officials are discussing alternatives to costly subsidies that have not rendered concrete results, but instead encouraged graft and the US sanctions.
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