WASHINGTON-The Bush administration today said it filed a complaint at the World Trade Organization about China’s tax treatment of integrated circuits imported from the United States, likely raising the stakes in a separate trade dispute between the two countries over a Chinese Wi-Fi security standard that allegedly hurts Intel Corp., Broadcom Corp. and other American firms.
The WTO complaint is the first lodged against China since it joined the global trade body in late 2001. The action comes at a time when the loss of American jobs to overseas competitors is becoming a major issue in this presidential election year.
“U.S. manufacturers of semiconductors and other products have a right to compete on a level playing field with Chinese firms,” said Robert Zoellick, the U.S. trade representative. “As a WTO member, China must live up to its WTO obligations; it cannot impose measures that discriminate against U.S. products.”
USTR said $2 billion worth of U.S. integrated circuits were exported to China in 2003. China, the world’s largest mobile-phone market, is becoming a giant in the semiconductor business. Its integrated circuit market is valued at about $19 billion, according to USTR, making China the world’s third biggest computer chip market.
Chinese officials are scheduled to meet with U.S. leaders here next month, at which time the semiconductor and Wi-Fi trade spats are expected to be discussed.
