During conversations with Dutch Prime Minister Mark Rutte, Chinese President Xi Jinping warned of the consequences of Western export barriers for high technology. “Artificially creating technological barriers and disrupting industrial and supply chains only lead to division and confrontation,” Xi said in Beijing on Wednesday.
The Chinese people also have a legitimate right to development, and “no force can stop China’s scientific and technological development and progress,” Xi said. The reason for his statements is the decision by the Netherlands to limit the export of chip production machines to China at the request of the US.
The US is pushing for a halt to exports and maintenance
The Netherlands-based group ASML is the world’s largest supplier of such systems. According to a media report, the US is also pushing to ban the maintenance of machines delivered before the current sales ban. For ASML, China is the most important sales market in the world after Taiwan.
Diplomatic balancing act for Rutte
During his visit to Beijing, Rutte tried to defuse the dispute given the diplomatic tightrope walking. “When it comes to our semiconductor sector and companies like ASML and we have to take measures, the Netherlands ensures that these are never targeted at a specific country and we always try to limit the impact,” he said.
Rutte’s talks with Xi are expected to focus on the maintenance of ASML facilities. Dutch Trade Minister Geoffrey van Leeuwen, who is accompanying Rutte on his trip to China, described defending ASML’s interests in a newspaper interview as his “number one priority”. If the Netherlands sticks to the hard course, China could order more from Japanese competitors such as Nikon and Canon. However, Japan is also under pressure from the US export embargo.
Source: Krone
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