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China accused the US of “generalising the concept of national security and abusing export control measures, even at the expense of allies’ interests”. Photo: Reuters

China hits out at US ‘coercion’ after Dutch move to curb chip gear exports

  • Commerce ministry calls on the Netherlands to ‘refrain from abusing export control measures’
  • It says Washington is trying to ‘artificially promote industry decoupling and disrupt the supply chain’
Beijing has accused Washington of coercing other countries to curb semiconductor supplies to China after the Netherlands announced new restrictions on exports of some chip-making equipment.
China’s commerce ministry highlighted “multi-level and frequent communication and consultation on semiconductor export control issues” with the Dutch government in recent months and expressed “dissatisfaction” over its decision in a statement on Saturday.

It urged the Dutch government not to “hinder the normal cooperation and development of the semiconductor industry between the two countries”.

The Netherlands should also “refrain from abusing export control measures, effectively safeguard the common interests of Chinese and Dutch enterprises, so as to maintain the stability of the global semiconductor industry chain supply chain”, the statement said.

Under the new rules, Dutch company ASML will have to apply for a licence to ship its advanced machines to China. Photo: AP

The ministry also lashed out at Washington, claiming the US was seeking to coerce other countries to impose restrictions on China.

“In order to maintain its global hegemony, the US has been, in recent years, constantly generalising the concept of national security, abusing export control measures, even at the expense of allies’ interests, coercion and co-optation of other countries to implement semiconductor suppression against China,” the statement said.

By pushing forward its campaign to stop China’s access to cutting-edge microchip technology, the US was also trying to “artificially promote industry decoupling and disrupt the supply chain”, which the ministry said seriously damaged the global semiconductor industry.

02:05

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The Netherlands on Friday said it would impose new export controls that bar high-end chip-making machines from being sold abroad without a permit – a move widely seen as an alignment with the US and Japan.

The measures, which will come into effect on September 1, do not specifically mention China. But under the new rules, Dutch firm ASML – the only company in the world that makes highly sophisticated chip-making machines – will have to apply for a licence to ship its advanced deep ultraviolet lithography, or DUV, systems to China.

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In March, Chinese ambassador to the Netherlands Tan Jian told Dutch newspaper Het Financieele Dagblad there would be consequences if the government blocked the export of high-end semiconductor equipment to China.

Hours after the announcement was made, the Chinese embassy in Amsterdam issued a statement calling on the Netherlands to “immediately correct its wrongdoings”, which it said would harm the interests of Chinese and Dutch companies.

“China will resolutely safeguard its legitimate rights and interests,” it said. “At the same time, we are also willing to work together with the Dutch side to explore solutions and jointly promote the healthy development of China-Dutch economic and trade relations on the principle of mutual benefit.”

14:45

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Friday’s move came as European leaders including Dutch Prime Minister Mark Rutte gathered in Brussels to discuss the European Union’s policy on China. The 27 EU leaders agreed to pursue a “de-risking” strategy in dealing with China and to reduce critical dependencies in its supply chain.

The Dutch export restrictions will deal a fresh blow to China’s semiconductor industry, which was already grappling with trade curbs imposed by the US and Japan.

From July, companies in Japan must obtain a licence before they can sell 23 types of chip-making equipment to China. Tokyo announced the controls in May, prompting the state-backed China Semiconductor Industry Association to warn of countermeasures.
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