China on Monday sued the United States through the World Trade Organization (WTO) dispute settlement mechanism over its chip export controls.

The U.S. passed a massive chip funding bill in July that pours $52.7 billion into domestic chip manufacturing. The bill aims to restrict China's semiconductor development through subsidies and bans on so-called "national security" grounds.

"The U.S. has repeatedly generalized the concept of national security in recent years, abused export control measures, and hindered the normal international trade of chips and other products. This is a typical trade protectionist approach," a spokesperson for China's Ministry of Commerce (MOFCOM) said in a statement.

China's filing of a lawsuit at the WTO is intended to defend its legitimate rights and interests through legal means, the spokesperson said.

Semiconductors are the world's fourth most traded product, just after crude oil, refined oil and cars, according to Boston Consulting Group. Its supply chain is highly global, with Chinese and American enterprises deeply integrated.

China hopes the U.S. will abandon its zero-sum bias and stop disrupting the trade of high-tech products, including chips, the statement added.

Separately, the WTO ruled last week that the 2018 U.S. tariffs on steel and aluminum imports violated global trading rules.

In March 2018, then-U.S. President Donald Trump slapped tariffs of 25 percent on steel imports and 10 percent on aluminum imports, citing national security concerns. Multiple countries, including China, lodged complaints with the WTO over the decision.

"China applauded the objective and fair ruling by a WTO expert panel," an MOFCOM spokesperson said Saturday. "Facts have proved that the WTO security exception clause is not a safe haven for unilateralism and protectionism."

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