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BEIJING, July 19 (TMTPOST)— China cautions that the United States is posing risks of disrupting the global chip industry and relevant supply chains after reports said Washington was pressing South Korea to join in an industrial alliance.

Source: Visual China

Actions from the U.S. side are undermining international trade rules and splitting the global market, and will eventually end in failure as what the U.S. has done are against the trend of times in a highly integrated global economy, Zhao Lijian, a spokesperson of China’s Ministry of Foreign Affairs commenting on South Korean media’s reports at a regular press on Tuesday.

Despite the self-appointed champion of free trade, the U.S. has repeatedly abused its state power to politicize, instrumentalize and weaponize sci-tech and business issues, engaged in “coercive diplomacy” and sought to forcibly relocate industries and push for decoupling, according to Zhao. China hopes relevant parties will stay objective and fair and bring more benefits for stabilizing the global chip industrial and supply chains, from the perspective their own long-term interests and the market principles of fairness and equity, the spokesperson stressed.

The reports Zhao commented were latest signs about U.S.’s efforts to curb China in high-tech sectors including the semiconductor.

The Biden administration is in talks with the South Korean government over improving cooperation on semiconductors, and has asked South Korean to decide whether to participate in a chip alliance called “Chip 4” or “Fab 4” by the end of August, Yonhap News Agency cited sources officials with knowledge of the matter. Chip 4, an alliance concept first introduced in March, is supposed to consist of the United States as leader of the equipment and software in semiconductor, Japan, the leader in parts and material sides, and Taiwan, the very foundry leader, and South Korea is in a dilemma because it cannot produce chips without all three members of the chip alliance, but it will become more vulnerable to China-related risks if it becomes a member, Business Korea, another South Korean media, quoted experts.