Dutch trade minister Liesje Schreinemacher confirmed that the Netherlands and the US are negotiating additional limits on exporting semiconductor technology to China.
In 2018, Washington pressured the Dutch government to bar ASML from exporting EUV machines to China. ASML is among the world’s largest chip companies. EUV machines are the most advanced systems in ASML’s offering.
The systems allow companies to manufacture advanced chips. By banning exports to China, the US is attempting to limit the country’s military and economic growth.
The US recently expanded the scope of its ban. Aside from banning additional domestic technology exports to China, the country is urging foreign governments to support its cause.
Dutch trade minister Liesje Schreinemacher confirmed that the Netherlands and the US are discussing the possibility of additional export restrictions on ASML.
Schreinemacher told reporters in Brussels that talks with the US are ongoing. According to the minister, the Netherlands is assessing its own interests, adding that the importance of national security cannot be overstated.
ASML machines are manufactured in Europe with minimal US components. The company’s headquarters are located in the Netherlands.
Although the US cannot directly prohibit the company from exporting to China, US Commerce Secretary Gina Raimondo recently stated that she expects allies, including the Netherlands, to follow US policies.
China calls on the Netherlands
Schreinemacher added that the Netherlands shares US concerns over China’s risks to national security. Some Dutch organizations are already prohibited from exporting technology to China due to national security concerns, which Schreinemacher believes is for the right reasons.
In 2021, ASML sold equipment worth over €2 billion ($2.08 billion) to China, accounting for almost 16 percent of global sales. On November 11, CEO Peter Wennink told investors that further export restrictions would not significantly impact ASML’s business in the coming years.
Chinese President Xi Jinping urged Dutch Prime Minister Mark Rutte to oppose the “politicization” of economic and trade matters during the G20 summit in Bali.