WT/DS615/1/Rev.1/Add.1, 
G/L/1471/Rev.1/Add.1 ,  
S/L/438/Rev.1/Add.1,  
G/TRIMS/D/46/Rev.1/Add.1 ,  
IP/D/44/Rev.1/Add.1  
 
19 September  2023 
(23-6222) Page: 1/10 
  Original: English  
 
UNITED STATES – MEASURES ON CERTAIN SEMICONDUCTOR AND OTHER PRODUCTS, 
AND RELATED SERVICES AND TECHNOLOGIES  
REQUEST FOR CONSULTATIONS BY CHINA 
Addendum  
The following communication, dated 15 September 2023 , from the delegation of China  to the 
delegation of the United States , is circulated to the Dispute Settlement Body in accordance with 
Article 4.4 of the DSU.  
 
_______________  
 
 
1.  My authorities have instructed me to request further consultations with the Government of the 
United States pursuant to Article 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  ("DSU"), Article XXIII of the General Agreem ent on Tariffs and Trade 1994  
("GATT 1994"), Article XXIII of the General Agreement on Trade in Services  ("GATS"), Article 8 of 
the Agreement on Trade -Related Investment Measures  ("TRIMs A greement"), and Article 64.1 of 
the Agreement on Trade -Related Aspec ts of Intellectual Property Rights  ("TRIPS A greement") 
concerning certain measure s of the United S tates related to trade restrictions on certain advanced 
computing semiconductor  chips, supercomputer items, semiconductor manufacturing items and 
other items,  as well as their related services and technologies destined for or in relation to China.  
This addendum supplements and does not replace China's request for consultations with the 
United  States dated 9 February 2023 .1  
2.  China considers that these measu res are inconsistent with the United States' obligations under 
various provisions of the covered agreements. Pursuant to Article 4.4 of the DSU, the reasons for 
this request, including identification of the measures at issue and an indication of the legal basis for 
the complaint, are given below.  
I. Background  
3.  The United States has maintained and implement ed an export control regime of certain items, 
including certain commodities, software and technology. The export control regime is administered 
by the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") through the Export 
Administration Reg ulations (15 CFR Parts 730 -774, "EAR").  
4.  The EAR covers, among others, exports from the United States and transfer  of foreign -produced 
products containing U.S. -origin components or derived from U.S. -origin technology or software. The 
list of EAR -contro lled "items", including  commodities, software and technology, is published in 
Supplement No.1 to Part 774 of the EAR, namely, the Commerce Control List ("CCL"). Each controlled 
item is designated with an Export Control Classification Number ("ECCN") consis ting of a set of digits 
and a letter. The CCL covers approximately 2,800 controlled items, far exceeding that of the 
international export control regime2 which covers approximately 1,800 controlled items. In other 
 
1 WT/DS615/1/Rev.1, G/L/1471/Rev.1.  
2 International export control regime consists of multilaterally recognized agreements or resolutions, 
which include but are not limited to, United Nations Security Council Resolution 1540 (2004), the Treaty on the WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  words, the United States imposes export c ontrols on approximately 1,000 items that are not included 
in the international export control regime.  
5.  Apart from items controlled under the ECCN, the EAR also includes an additional "basket 
category", i.e., the EAR99, which covers any item that is su bject to the EAR as defined in §734.3(a) 
of the EAR but not listed on the CCL.  
6.  For items subject to the EAR, a license may be required for export, reexport or transfer 
(in-country) depending on the destination country, receiving party and end use, unle ss an exclusion 
or exemption applies. Notably, the destination countries are divided into groups listed in the 
Commerce Country Chart3 and Country Groups,4 and the receiving parties are controlled in the Entity 
List,5 the Military End User List6 and the Unverified List.7 To ensure the compliance with the EAR, 
traders from not only the United States but also other WTO Members must go through as many as 
29 steps to determine and carry out their EAR obligations.8 
7.  An export control regime should serve to promote global security and facilitate responsible export 
with respect to the international commitment s of non -proliferation. However, the United States 
abuses its export control regime  as a tool to achieve its objectives of maintaining "its leadership in 
science, technology, engineering and manufacturing sectors".9 As a blatant example, the United 
States implements export control on items for civilian us e and on activities of commercial entities, 
with a view to weaken the scientific and technological development of other WTO Members and to 
preserve its technology edge.10  
8.  To achieve these goals, the United States has amended the EAR and adopted a seri es of 
disruptive measures targeting China's development in related sectors and in the global 
semiconductor supply chain. The United States not only imposes export controls itself on China, but 
 
Non-Proliferation of Nuclear Weapons, the Convention on the Prohibition of the Development, Production and 
Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction, and the Convention on 
the Prohibition of the Development, Production, Stockpiling and Use of Chemical W eapons and on Their 
Destruction.  
3 The Commerce Country Chart is provided in Supplement No.1 to Part 738 of the EAR.  
4 The Country Groups are provided in Supplement No. 1 to Part 740.  
5 The Entity List is provided in Supplement No. 4 to Part 744 of the EA R. The Entity List identifies foreign 
parties that are prohibited from receiving some or all items subject to the EAR unless the exporter secures a 
license. BIS can add to the Entity List a foreign party, such as an individual, business, research instituti on, or 
governmental organization, for engaging in certain activities. In most instances, license exceptions are 
unavailable for the export, reexport, or transfer (in -country) to a party on the Entity List of items subject to the 
EAR. Rather, prior license authorization is required, usually subject to a policy of denial.  
6 The Military End User List is provided in Supplement No. 7 to Part 744 of the EAR. It identifies foreign 
parties that are prohibited from receiving items described in Supplement No. 2 of P art 744 of the EAR unless the 
exporter secures a license.  
7 The Unverified List is published in Supplement No. 6 to Part 744 of the EAR. It is a list of parties whose 
bona fides BIS has been unable to verify. No license exceptions may be used for exports, reexports, or transfers 
(in-country) to unverified parties. A statement must be obtained from such parties prior to shipping items not 
subject to a license requirement.  
8 See Part 732 of the EAR where the 29 steps are listed and explained.  
9 See 50 U.S. Code, section 4811 (Statement of policy): "The following is the policy of the United States: 
…… (3) The national security of the United States requires that the United States m aintain its leadership in the 
science, technology, engineering, and manufacturing sectors, including foundational technology that is essential 
to innovation. Such leadership requires that United States persons are competitive in global markets. The impact 
of the implementation of this part on such leadership and competitiveness must be evaluated on an ongoing 
basis and applied in imposing controls under sections 4812 and 4813 of this title to avoid negatively affecting 
such leadership."  
10 The United States ' abuse of export control regime is evidenced in the public speeches of its government 
officials. For example, on September 16, 2022, the National Security Advisor Jake Sullivan explained the United 
States' ambition and determination to pursue strength "at  home" and "around the world" in his speech at the 
Special Competitive Studies Project Global Emerging Technologies Summit: "[o]n export controls, we have to 
revisit the longstanding premise of maintaining 'relative' advantages over competitors in certain key 
technologies. Given the foundational nature of certain technologies, such as advanced logic and memory chips, 
we must maintain as large of a lead as possible …… [T]echnology export controls can be more than just a 
preventative tool. " See Remarks by Nati onal Security Advisor Jake Sullivan at the Special Competitive Studies 
Project Global Emerging Technologies Summit, September 16, 2022, at https://www.whitehouse.gov/briefing -
room/speeches -remarks/2022/09/16/remarks -by-national -security -advisor -jake-sullivan -at-the-special -
competitive -studies -project-global -emerging -technologies -summit/ . WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  also compels other WTO Members to follow suit by virtue of its extra-territorial control. By 
overstretching the extent of export controls and by bullying other WTO Members, the U nited States  
has caused severe disruption to international trade and risked the disintegration of the global 
semiconductor supply chain.  
9.  The above -mentioned disruptive measures are set forth in an interim final rule published by BIS 
on October 7, 2022 ("Interim Final Rule") 11. The Interim Final Rule was exempted from the 
Administrative Procedure Act (5 U.S.C. 553) requirement for notice o f proposed rule -making and 
became effective from October  7, 2022. According to the Office of the Federal Register, a federal 
agency may confirm an interim final rule by publishing a final rule in the Federal Register.12 The 
Interim Final Rule places trade restrictions on certain  advanced computing semiconductor chips, 
supercomputer items, semiconductor manufacturing items and their related products, services and 
technologies destined for China, certain Chinese entities and, in some cases, transferred within  or 
exported from China. The Interim Final Rule tightens the control against China 's ability to 
manufacture semiconductor -related products from various regulatory perspectives, including, 
among others, controlling semiconductor manufacturing equipment and other items for civil use, 
adding certain Chinese semiconductor companies to the Entity List, imposing a broad end -use 
control, and imposing broad and vague controls on activities of U.S. corporations and individuals. 
The Interim Final Rule, with its FDP R ules, even compels other Members to follow suit and exert 
controls on shipments from outside the United States with respect to non -U.S.-origin items. In 
combination with applying a presumption -of-denial policy for export control license applications, the 
Interim Final Rule overstretches the extent and effect of the export control regime to an extreme.  
10.  In the Background section, the Interim Final Rule clearly expresses that it is designed to "limit 
the PRC's ability to obtain advanced computing chips or  further develop AI and 'supercomputer' 
capabilities", to limit "the ability to produce indigenously within China these types of advanced 
[integrated circuits ("ICs ")]" and to "limit the PRC's ability to obtain semiconductor manufacturing 
capabilities to produce ICs".13 The extreme, discriminatory and trade -restrictive nature of the 
Interim Final Rule reveals its true intent to maintain technology edge  and to suppress the normal 
and commercial development of semiconductor industry in another Member.  The me asures nullify 
and impair the benefits legitimately expected by China under the multilateral trade rules, destabilize 
the global semiconductor supply chain, and also jeopardize the rule -based multilateral trading 
system that every Member counts on for thei r legitimate development rights. In China's view, the 
Interim Final Rule and other disruptive export control measures constitute disguised restrictions on 
trade that are based on political and economic motivations – notably "leadership in science, 
technology, engineering and manufacturing " – which cannot be justified by the national security 
exceptions of the covered agreements . 
II. The Measures at Issue  
11.  As noted, the measure s at issue are motivated by political and economic considerations for 
preserving the United States ' "leadership " in technology sectors , and constitute discriminatory and 
disguised trade restrictions. The measures at issue include but are not limited to:  
12.  The Export Control Reform Act of 2018 (50 U.S. Code Sections 480 1 – 4852), including but not 
limited to Section 4811 ( "Statement of policy "); 
13.  The Export Administration Regulations (15 CFR Parts 730 – 774), including but not limited to 
the following pr ovisions:  
 
11 See Bureau of Industry and Security, Implementation of Additional Export Controls: Certain Advanced 
Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconduc tor End Use; Entity List 
Modification, 87 FR 62186, Federal Register/Vol. 87, No. 197/Thursday, October 13, 2022, at  
https://www.govinfo.gov/content/pkg/FR -2022-10-13/pdf/20 22-21658.pdf . 
12 See Office of the Fed eral Register, A Guide to the Rulemaking Process, at 
https://www.federalregister.gov/uploads/20 11/01/the_rulemaking_process.pdf   
13 See Bureau of Industry and Security, Implementation of Additional Export Controls: Certain Advanced 
Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List 
Modification, Section I (Background),87 FR 62186, Federal Register/Vol. 87, No. 197/Thursday, October 13, 
2022, at https://www.govinfo.gov/content/pkg/FR -2022-10-13/pdf/2022 -21658.pdf . WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  13.1 §732.3(a), §732.3(b)(3), § 740.2(a)(9), §742.6(a)(6) and §742.6(b)(10) of the EAR 
("ECCN Rules");  
13.2 §734.9(h), § 734.9(i), §742.6(a)(6), §742.6(b)(10) and §744.23 of the EAR ("FDP 
Rules");   
13.3 §734.9(e) , §744.11(a)(2), and Supplement No. 5 to Part 744 of the EAR  ("Entity  List and 
Entity List FDP Rules");  
13.4 §744.1(a)(1) and §744.23 of the EAR (" End User/End Use Rules"); and  
13.5 §744.6(c), §744.6(d) and §744.6(e)(3) of the EAR (" U.S. Persons' Activities Rules");  
14.  The Interim Final Rule , i.e. the Implementation of Additional Export Controls: Certain Advanced 
Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; 
Entity List Modification (87 FR 62186, Federal Register/Vol. 87, No. 197 , October 13, 2022);  
15.  FAQs for Interim Final Rule – Implementation of Additional Export Controls: Certain Advanced 
Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; 
Entity List Modification  (published by BIS on October 28,  2022);14 
16.  The failure of the United States to publish promptly the Interim Final Rule  in such a manner as 
to enable traders and other interested parties to become acquainted with it, and to administer the 
Interim Final Rule in a uniform, impartial and  reasonable manner.  
17.  The decisions adding or revising Chinese entities in the Entity List with a Footnote 1 or 4 
designation, and the decisions adding or revising the Chinese entities in the Entity List that are in or 
related to the semiconductor indus try, including among others:  
17.1 The Interim Final Rule (87 FR 62186, Federal Register/Vol. 87, No. 197 , October 
13, 2022)  
17.2 Additions and Revisions to the Entity List and Conforming Removal from the Unverified 
List (87 FR 77505, Federal Register / Vol. 87, No. 242, December 19, 2022);  
17.3 Additions and Revisions of Entities to the Entity List (88 FR 13673, Federal Register / 
Vol. 88, No. 43, March 6, 2023); and  
17.4 Additions of Entities to the Entity List and Removal of Entity from the Entity List (88 FR 
38739, Federal Register / Vol. 88, No. 114, June 14, 2023).  
18.  The measures at issue also include any amendments, replacements , supplements, extension or 
renewal of the measures listed above15 as well as any measure relating to, admini stering or 
implementing the measures listed above. The following Sections A through F provide an illustrative 
list of the particular aspects of the measures  at issue that China considers to be inconsistent with 
the covered agreements :  
A. ECCN Rules 
19.  The ECCN Rules add or update, among others, the following ECCN items of the CCL: (i) ECCN 
3B090, which controls certain semiconductor manufacturing deposition equipment and specially 
designed parts, components and accessories for such equipment; (ii) ECCNs 3D0 01 and 3E001, 
which control the associated software and technology for items in ECCN 3B090; (iii) ECCN 3A090 
 
14 See https://www.bis.doc.gov/index.php/documents/product -guidance/3181 -2022-10-28-bis-faqs-
advanced -computing -and-semiconductor -manufacturing -items -rule-2/file.  
15 The measures at issue also include the final rule, if any, pub lished to amend, replace, supplement, 
extend, renew, supersede or confirm the Interim Final Rule.  WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  for certain advanced integrated circuits ("ICs"); (iv) ECCN 4A090 for commodities containing chips 
that meet or exceed the performance parameters o f ECCN 3A090; (v) ECCNs 4D090 and 4E001 for 
associated software and technology specially designed or modified for the development or production 
of computers and related equipment, electronic assemblies, and components specified in ECCN 
4A090 for certain re asons. Also, a license is required for the export from China to any destination 
worldwide of ECCN 3E001 (for 3A090) technology developed by an entity headquartered in China 
that is the direct product of software subject to the EAR and is for the production  of commodities 
identified in ECCNs 3A090, 4A090, or identified elsewhere on the CCL that meet or exceed the 
performance parameters of ECCNs 3A090 or 4A090.  
20.  License applications will be reviewed by BIS with a presumption of denial. The ECCN Rules also  
limit the availability of most license exceptions for certain exports, reexports, or transfers to or 
within China.  
21.  Furthermore, it appears to China that the EAR controls items of an excessively broad coverage. 
By the "basket category" EAR99 as provided in §732 .3(b)(3), the EAR controls "low -technology 
consumers goods"16 or "non -sensitive products and potentially sensitive technologies".17 A license is 
required when an EAR99 item is destined for any of the embargo country, prohibited end -user, or  is 
being exported in support of a prohibited end -user (including entities designated in the Entity List). 
Such license requirement on EAR99 will result in discrimination to trade in non -sensitive commercial 
items destined for certain WTO Members or commer cial end -users, such as the Chinese entities 
designated in the Entity List.  
B. FDP Rules 
22.  The FDP Rules substantially expand the scope of items that are "subject to the EAR" to cover 
non-U.S.-origin  items in the advanced computing and semiconductor secto r that are produced 
outside the United States and are destined for China or listed entities.  The FDP Rules published on 
October 7, 2022 impose license requirements for any foreign -produced item subject to the EAR if 
such item is either (i) a "direct produc t" of "technology" or "software" specified under certain ECCNs; 
or (ii) produced by any plant or "major component" of a plant where the plant or "major component" 
of a plant itself is a "direct product" of U.S. -origin "technology" or "software" specified u nder certain 
ECCNs.18 
23.  The FDP Rules consist of the following:  
23.1 Advanced Computing FDP Rules : provided mainly in § 734.9(h) of the EAR , the Advanced 
Computing FDP Rules  apply if the individual or entity has "knowledge"19 that the 
 
16 The description "low -technology consumer goods " of EAR99 is provided by BIS. See 
https://www.bis.doc.gov/index.php/regulations/commerce -control -list-ccl.  
17 The description "non -sensitive products and potentially sensitive technologies" of EAR 99 is provide by 
the Congressional Research S ervice, U.S. Export Controls and China, March 24, 2022. See 
https://crsreports.congress.gov/product/pdf/IF/IF11627 . 
18 According to the Interim Final Ru le of October 7, 2022, the FDP Rules cover different groups of foreign -
produced items:  
The Advanced Computing FDP Rules apply to a foreign -produced item if :(1) it is the "direct product" of 
"technology" or "software" subject to the EAR and specified in 3D 001, 3D991, 3E001, 3E002, 3E003, 3E991, 
4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E991, or 5E002 of the 
CCL; or it is produced by any plant or "major component" of a plant when the plant or "major component" of a 
plant i tself is a "direct product" of U.S. -origin "technology" or "software" specified in the ECCNs above; and (2) 
the foreign -produced item is specified in ECCN 3A090, 3E001 (for 3A090), 4A090, or 4E001 (for 4A090) of the 
CCL; or the foreign -produced item is an integrated circuit, computer, "electronic assembly," or "component" 
specified elsewhere on the CCL and meets the performance parameters of ECCN 3A090 or 4A090.  
The Supercomputer FDP Rules apply to a foreign -produced item if: (1) it is the "direct product" of 
"technology" or "software" subject to the EAR and specified in ECCN 3D001, 3D991, 3E001, 3E002, 3E003, 
3E991, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, 5E991, 5D002, or 5E002 of the 
CCL; or (2) the foreign -produced item is produced by any plant or "major component" of a plant when the plant 
or "major component" of a plant itself is a "direct product" of U.S. -origin "technology" or "software" specified in 
the ECCN 3D001, 3D991, 3E001, 3E002, 3E003, 3E991, 4D001, 4D994, 4E001, 4E992, 4 E993, 5D001, 5D991, 
5E001, 5E991, 5D002, or 5E002 of the CCL.  
19 According to Part 772 of the EAR, knowledge of a circumstance (the term may be a variant, such as 
"know," "reason to know," or "reason to believe") includes not only positive knowledge that th e circumstance WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  foreign -produced item that meets certain conditions is: (1) destined for China or will be 
incorporated into any "part," "component," "computer" or "equipment" not designated EAR99 
that is destin ed for China; or (2) technology developed by an entity headquartered in China for 
the "production" of a mask or an IC wafer or die.  
23.2 Supercomputer FDP Rules:  provided mainly in § 734.9(i) of the EAR, the Supercomputer 
FDP Rules apply to certain items d estined for China whenever the exporter has "knowledge" 
that the foreign -produced item that meets certain conditions will be :(1) used in the design, 
"development," "production," operation, installation (including on -site installation), 
maintenance (checkin g), repair, overhaul or refurbishing of a "supercomputer" (as defined in 
§772.1 of the  EAR) located in or destined for China; or (2) incorporated into or used in the 
"development" or "production" of any "part," "component" or "equipment" that will be used in 
a "supercomputer" located in or destined for China.  
24.  The license applications submitted under the FDP Rules will be reviewed by BIS with a 
presumption of denial.  
C. Entity List and Entity List FDP Rules  
25.  The EAR maintains  an Entity List in Supplement No. 4 to Part 744 of the EAR as a tool to control 
exports to certain end users. T he reasons for an entity to be listed in the Entity List can be very 
broad. 20  
26.  The procedures for addition to, modification of or removal of an entity from the Entity List are 
provided in Supplement No.5 to Part 744 of the EAR. Firstly, the addition to the Entity List needs a 
majority vote of the member agencies of the End -User Review Committee ( "ERC")21; in contrast, 
the criteria for the removal from the Entity List is stricter, requiring a unanimous vote of all ERC 
member agencies. Secondly, the EAR  provides an internal review and remedy mechanism for the 
member agencies of ERC if it is not satisfied with the outcome of the vote for addition to, modification 
of or removal of the entity. However, once a decision is made by the ERC (or after the intern al review 
and the remedies are exhausted), the decision is final for the entity concerned and cannot be further 
reviewed through regular EAR interagency review process. Therefore, the entity concerned is 
afforded with fewer opportunities than the ERC membe r agencies to seek review and remedies for 
the administrative decision that imposes restriction on trade.  
27.  With respect to the Entity List itself, generally, the Entity List identifies non -U.S. entities that 
are prohibited from receiving some or all it ems subject to the EAR unless the exporter secures a 
license. However, for certain Chinese entities, the EAR expands the restrictions by applying Footnote 
1 or 4 designation to the entities in the Entity List. Both Footnote 1 and Footnote 4 expand the 
licensing requirements for foreign produced items by applying broader FDP rules (the Entity List FDP 
Rules) where a Footnote 1 or 4 designated entity is involved. Because broader FDP rules apply, more 
foreign produced items will be subject to the EAR and, ther efore, require a license. The Entity List 
FDP Rules apply if there is the knowledge that a foreign -produced item22 will be involved in activities 
 
exists or is substantially certain to occur, but also an awareness of a high probability of its existence or future 
occurrence. Such awareness is inferred from evidence of the conscious disregard of facts known to a person and 
is also inferr ed from a person's willful avoidance of facts.  
20 The criteria for revising and adding an entity into the Entity List are provided in §744.11(b) of the EAR. 
According to §744.11(b), any entities for which there is reasonable cause to believe, based on speci fic and 
articulable facts, that the entity has been involved, is involved, or poses a significant risk of being or becoming 
involved in activities that are contrary to the national security or foreign policy interests of the United States and 
those acting on behalf of such entities may be added to the Entity List. The criteria listed in paragraphs (b)(1) 
through (5) are only "an illustrative list of activities" that cannot represent all and any circumstances.  
21 According to paragraph 1 of the Supplement No .5 to Part 744 of the EAR, the ERC composes of 
representatives of the Departments of Commerce, State, Defense, Energy and, where appropriate, the Treasury.  
22 According to §734.9(e)(1)(i) of the EAR, the export control in Footnote 1 applies to a foreign -produced 
item if : (1) it is a " direct product " of "technology " or "software " subject to the EAR and specified in ECCN 3D001, 
3D991, 3E001,  3E002, 3E003, 3E991, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, or  
5E991 of the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR; or  (2) the foreign 
produced item is produced by any plant or 'major component ' of a plant that is located outside the  United States, 
when the plant or 'major component ' of a plant, whether made  in the U.S. or a  foreign country, itself is a "direct WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  of a designated entity with Footnote 1 or 4 on the Entity List, or the aforesaid entity is a party to 
the tran saction. 23 As illustrated above, the United States applies these designations to a number of 
Chinese entities.  
28.  For the entities designated with Footnote 1 or 4, the review policy is set forth in the entry in 
Supplement No. 4 to Part 744 of the EAR. Most of the designated entities will be reviewed by BIS 
with a presumption of denial.  
D. End User/End Use Rules  
29.  The new End User /End Use Rules expand the scope of controlled items subject to the license 
requirement by limiting semiconductor manufacturing  and supercomputer end use in China. 
According to §744.23 of the EAR, BIS imposes end -user/end -use controls based upon an individual 
or entity's knowledge that certain items subject to the EAR are destined for a supercomputer or 
semiconductor development o r production end -use in China.  
30.  Pursuant to §744.23(a) of the EAR, the following activities are subject to license requirements: 
(1) any item subject to the EAR being used in the "development" or "production" of ICs at a 
semiconductor fabrication "fac ility" located in China that fabricates certain ICs; (2) certain items 
subject to the EAR being used for the "development," "production," "use," "operation," installation 
(including on -site installation), maintenance (checking), repair, overhaul or refurbi shing of a 
"supercomputer" located in or destined for China; (3) any item subject to the EAR being used in the 
"development" or "production" in China of any "parts," "components" or "equipment" specified under 
certain ECCNs.24 §744.23(b) of the EAR specifi es that BIS may inform persons of a new license 
 
product " of U.S. -origin "technology " or "software " that is  specified in ECCN 3D001, 3D991, 3E001, 3E002, 3E003, 
3E991, 4D001, 4D993, 4D994, 4E001,  4E992, 4E993, 5D001, 5D991, 5E001, or 5E991 of the CCL . 
According to §734.9(e)(2)(i) of the EAR, the export control in Footnote 4 applies to a foreign -produced 
item if : (1) it is the "direct product" of "technology" or "software" subject to the EAR and specified in ECCN 
3D001, 3D991, 3E001, 3E002, 3E003, 3E9 91, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 
5D991, 5E001, 5E002, or 5E991 of the CCL; or (2) the foreign -produced item is produced by any plant or 'major 
component ' of a plant when the plant or 'major component ' of a plant, whether made in the U.S. or a foreign 
country, itself is a "direct product" of U.S. -origin "technology" or "software" that is specified in ECCN 3D001, 
3D991, 3E001, 3E002, 3E003, 3E991, 4D001, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, 
5E991, 5D002, or 5E002 of the CCL.  
23 According to §734.9(e)(1)(ii) of the EAR, the export control in Footnote 4 apply to a foreign -produced 
item if: (1) the foreign -produced item will be or will be used in the "production " or "development " of any "part, 
"component, " or "equipmen t" produced, purchased, or ordered by any entity with a footnote 1  designation in the 
license requirement column of the Entity List in supplement no. 4 to part 744 of  the EAR; or  (2) any entity with 
a footnote 1 designation in the license requirement colum n of the Entity List in supplement no. 4 to part 744 of 
the EAR is a party to any transaction involving the foreign -produced item, e.g., as a "purchaser", "intermediate 
consignee", "ultimate consignee", or "end -user".  
According to §734.9(e)(2)(ii) of the E AR, the export control in Footnote 4 apply to a foreign -produced 
item if: (1) the foreign -produced item will be incorporated into, or will be used in the "production " or 
"development " of any "part", "component", or "equipment" produced, purchased, or ordered by any entity with 
a Footnote 4 designation in the license requirement column of the Entity List in Supplement no. 4 to Part 744 of 
the EAR; or (2)  any entity with a footnote 4 des ignation in the license requirement column of the Entity List in 
supplement no. 4 to part 744 of the EAR is a party to any transaction involving the foreign -produced item, e.g., 
as a "purchaser", "intermediate consignee", "ultimate consignee", or "end -user". 
24 To be more specific, pursuant to the §744.23 of the EAR, one may not export, reexport, or transfer (in -
country) without a license any item subject to the EAR meeting the product scope in paragraph (1) below when 
you have "knowledge" at the time of exp ort, reexport, or transfer (in -country) that the item is destined for the 
end-use described in paragraph (2) below.  
(1) Product scope. Any of the following items meet the product scope of the prohibition:  
(i)An integrated circuit subject to the EAR and specified in ECCN 3A001, 3A991, 4A994, 5A002, 5A004, 
or 5A992 when you know the item will be used in an end use described under paragraph (2)(i) or (ii);  
(ii) computer, "electronic assembly," or "component" sub ject to the EAR and specified in ECCN 4A003, 
4A004, 4A994, 5A002, 5A004, or 5A992 when you know the item will be used in an end use described under 
paragraph (2)(i) or (ii);  
(iii) Any items subject to the EAR when you know the items will be used in an end use described in 
paragraphs (2)(i) or (ii);  
(iv) Any items subject to the EAR and classified in an ECCN in Product Groups B, C, D, or E in Category 
3 of the CCL when you know the items will be used in an end use described in paragraph (2)(iv) of this secti on; 
or  
(v) Any item subject to the EAR when you know the item will be used in an end use described in 
paragraph (2)(v).  WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  requirement imposed on certain end -users when BIS considers there is an unacceptable risk of use 
in, or diversion to, the activities specified in §744.23(a)(2) of the EAR.  
E. U.S. Persons' Activities Rules  
31.  The U.S. Persons' Activities Rules restrict U.S. persons from engaging in or facilitating activities 
supporting the development or production of certain ICs at fabs in China.  
32.  According to §744.6(c) of the EAR, BIS requires a U.S. person to obtain  a license to engage in 
(or facilitate) shipping, transmitting, transferring or servicing: (1) items not subject to the EAR that 
the individual or company knows will be used in the "development" or "production" of ICs at a 
semiconductor fabrication "facili ty" located in China that fabricates certain ICs; (2) items not subject 
to the EAR and meeting the parameters of any ECCN in Product Groups B, C, D or E in Category 3 
of the CCL that the individual or company knows will be used in the "development" or "pro duction" 
of ICs at any semiconductor fabrication "facility" located in China, for which the individual or 
company does not know whether such semiconductor fabrication "facility" fabricates certain ICs; 
and (3) items not subject to the EAR and meeting the p arameters of certain ECCNs regardless of 
end use or end user.25  
F. Procedural Deficiencies  
33.  The United States did not publish promptly the Interim Final Rule in such a manner as to enable 
traders and other interested parties to become acquainted with it and therefore failed to administer 
the measures in a uniform, impartial and reasonable manner. In or around September 2022, certain 
semiconductor companies were reported to be informed by BIS of the future publication of the 
Interim Fina l Rule and were required to halt their exports in advance.26 In other words, the United 
States enforced certain trade -restrictive measures before the promulgation of such measures.  
34.  In addition, the  procedural discrepancy for adding to and removing fr om the Entity List as 
mentioned in Part II.C above constitutes an instance for the United States' failure to administer its 
export control regime in a uniform, impartial and reasonable manner. The imprecisely and 
uncertainly broad scope of EAR99, which res ults in restrictions on non -sensitive and commercial 
items and on commercial entities that should not have been restricted under the export control 
regime, also reflects the United States' failure to administer its export control regime in a uniform, 
impar tial and reasonable manner.  
 
(2) End -use scope. The following activities meet the end -use scope of the prohibition:  
(i) The "development," "production," "use," oper ation, installation (including on -site installation), 
maintenance (checking), repair, overhaul, or refurbishing of a "supercomputer" located in or destined to the 
PRC; 
(ii) The incorporation into, or the "development" or "production" of any "component" or "equipment" 
that will be used in a "supercomputer" located in or destined to the PRC; or  
(iii) The "development" or "production," of integrated circuits at a semiconductor fabrication "facility" 
located in the PRC that fabricates integrated circuits meetin g any of the following criteria:  
(A) Logic integrated circuits using a non -planar transistor architecture or with a  
"production" technology node of 16/14 nanometers or less;  
(B) NOT AND (NAND) memory integrated circuits with 128 layers or more; or  
(C) Dyna mic random -access memory (DRAM) integrated circuits using a "production" technology node 
of 18 nanometer half -pitch or less; or  
(iv) The "development" or "production" of integrated circuits at any semiconductor fabrication "facility" 
located in the PRC, bu t you do not know whether such semiconductor fabrication "facility" fabricates integrated 
circuits that meet any of the criteria in paragraphs (2)(iii)(A) through (C); or  
(v) The "development" or "production" in the PRC of any "parts," "components," or "eq uipment" 
specified under ECCN 3B001, 3B002, 3B090, 3B611, 3B991, or 3B992.  
25 See §744.6 (c)(2) of the EAR.  
26 For instance, NVIDIA Corporation filed a report to the United States Securities and Exchange 
Commission on August 26, 2022 that the United States imposed a new license requirement, effective 
immediately, for any future export of the company's certain types of ICs to China. Systems that incorporate such 
certain types of ICs were also covered by the license requirement, and the license requirement als o included 
future ICs that achieve equal or greater performance. See Nvidia Corporation, Current Report Pursuant To Section 
13 Or 15(d) Of The Securities Exchange Act Of 1934, at 
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001045810/000104581022000146/nvda -20220826.htm . WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  III. Legal Basis of the Complaint  
35.  The measures at issue described above constitute restrictions on trade and are inconsistent 
with the United States' obligations under various provisions of the covered agreements, including 
but not limited to:  
36.  Article I:1 of the GATT 1994  because, through the measures at issue, individually and 
collectively, the United States fails to accord, with respect to rules and formalities in connection with 
exportation, immediately and unconditionall y the advantage, favor, privilege and immunity granted 
to products destined for other WTO Members to like products destined for China;  
37.  Article XI:1 of the GATT 1994 because the measures at issue, individually and collectively, 
constitute restrictions instituted and maintained by the United States on the exportation or sale for 
export of the products destined for China;  
38.  Article 2 of the TRIMs Agreement  because the measures at issue, individually collectively, 
constitute investment measures related to trade in goods, which are inconsistent with Article XI of 
GATT 1994;  
39.  Article 28 of the TRIPS Agreement  because the measures at issue, individually and collectively, 
prevent patent owners from (a) assigning, or transferring by succession, the patent  and 
(b) concluding licensing contracts;  
40.  Article X:1 of the GATT 1994  because the United States has instructed certain semiconductor 
companies to make applications in relation to the new license requirements set forth in the Interim 
Final Rule before  such requirements were officially published. The United States failed to publish 
promptly the Interim Final Rule pertaining to trade restrictions in such a manner as to enable 
governments and traders to become acquainted with them ; 
41.  Article X:3 of the  GATT 1994  because the measures at issue constitute laws, regulations, 
decisions, and/or rulings of general application relating to trade restrictions and the United States 
fails to administer those measures in a uniform, impartial and reasonable manner.  
42.  Article VI of the GATS because the United States, through its U.S. Persons ' Activities Rules, fails 
to ensure that its trade -restrictive measures of general application affecting trade in services are 
administered in a reasonable, objective and impartial manner. Furthermore, the United States fails 
to maintain or institute object ive and impartial procedures which, at the request of an affected entity, 
provide for the prompt review of and appropriate remedies for administrative decisions affecting 
trade in services.  
43.  China  emphasizes that the measures at issue have impeded trad e in a way that exceeds the 
permissible limits of security exceptions under such provisions as Article XXI of the GATT 1994. 
The measures at issues arbitrarily over -stretch the normal scope of export controls by seeking to 
use security exceptions to preser ve the United States' economic and technological "leadership".  
The measures at issue significantly disrupt normal international trade concerning 
semiconductor -related products and imperil the multilateral trade order that all Members benefit 
from.  
*** ***  
44.  As a result of the foregoing, the measures at issue appear to nullify or impair benefits accruing 
to China directly or indirectly under the cited agreements.  
45.  China reserves the right to raise additional claims and legal matters regarding the 
above-mentioned measures at issue during the course of the consultations. For avoidance of doubt, 
China considers the scope of this request for consultations to encompass specific instances of the 
application of the measures described herein, as well as any on going conduct resulting from the 
continued application of these measures.  WT/DS615/1/Rev.1/Add.1 • G/L/1471/Rev.1/Add.1 • S/L/438/Rev.1/Add.1 • 
G/TRIMS/D/46/Rev.1/Add.1 • IP/D/44/Rev.1/Add.1  
 
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  46.  China looks forward to receiving the reply of the Government of the United States to this request 
and to setting a mutually convenient date for consultations.  
__________