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The Dutch government will propose better coordination of export restrictions with other EU member states today. Disagreement over the sale of ASML machines has moved the cabinet to take this step.

The proposal will appear in the Dutch House of Representatives today, Bloomberg reports. The desire from the outgoing cabinet is to more clearly coordinate the export of advanced technology. In doing so, it wants to make greater use of the so-called Dual Use Regulation. This concerns the export of equipment that can be used for both civilian and military purposes.

The Netherlands under pressure from the US in ASML restrictions

Sources previously revealed that the Netherlands had curtailed ASML’s ventures more severely due to U.S. pressure. The goal from the United States is that China is essentially half a decade behind in the chip industry, with outdated chip processes. At the request of the U.S., ASML allegedly cancelled orders toward China, which went even further than its already restrictive export policy.

A major argument for the export restrictions on certain ASML machines is that they curb China’s military ambitions. Without the latest high-NA EUV chip manufacturing, which is currently only possible through ASML equipment, that country risks falling behind technologically; consequently, it would not be able to develop superior weapons technologies.

The restrictions are driving ASML to consider a possible departure from the Netherlands, as other nations (even European ones) might not lay down the law as much. That exit would be very gradual, but in the long run it would be a major drain on the Netherlands’ strategic position in the chip industry.

Therefore, the Netherlands is working on a strategy to retain ASML. The so-called “Beethoven” plan aims to circumvent the potential brake on labour migration for ASML, a key issue for outgoing CEO Peter Wennink. He stressed earlier that the company will expand where it can, even outside the Netherlands.

Read also: Dutch government works on strategy to keep ASML in the Netherlands