The US announced it plans to lodge a complaint with the World Trade Organization (WTO) over tax breaks China gives semiconductor companies for producing microchips on the mainland. China responded by rejecting US accusations that it intentionally hindered American imports from entering its US$30 billion chip market. The US said the mainland practice of refunding 80% of its value-added-tax to domestic chip firms, but not to foreign suppliers, discourages imports of US-made chips. China said it will fight any complaints brought up by the US with the WTO. A move to the WTO would break a trend of Washington dealing directly with Beijing on trade issues.