US pressures allies into containing China Chips industry: Global Times

By Al Mayadeen English
Source: Global Times
1 Jul 2023 12:11

As part of efforts to contain China's growing influence in the semiconductor industry, the US has been exerting pressure on its Dutch ally to restrict the sale of cutting-edge semiconductor-making tools.

Exterior view of one of the buildings in the ASML complex, a leading maker of semiconductor production equipment, in Veldhoven, Netherlands, Monday, Jan. 30, 2023 (AP Photo/Peter Dejong)

A report by the Global Times on Saturday detailed new strategies that the US is employing as part of efforts to contain China's growing influence in the semiconductor industry.

These include the use of long-arm jurisdiction, abusing technology export controls, and coercing Western allies to further restrict sales of semiconductor-making tools that are crucial for China's tech industry.

On Friday, the Dutch government unveiled a ministerial order aimed at restricting the exports of certain advanced semiconductor equipment.

"We've taken this step on national security grounds," Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher said in a Friday statement.

Although Amsterdam claims that the measures are "country-neutral," experts believe they were specifically introduced as a result of pressure stemming from the US with the aim of weakening China.

Experts further believe that the US is considering moving a step further to restrict even more Dutch equipment from specific Chinese companies this summer, as per a report by Reuters on Friday.

Ma Jihua, the founder of Beijing DARUI Management Consulting Co, told the Global Times on Friday that this was all part of an "intensified siege" on China's semiconductor industry.

MFA spokesperson Mao Ning told reporters on Friday that the US' actions "overstretch the national security concept and abuses export controls."

"The US, under various pretexts, is attempting to cajole or coerce other countries into joining its technological blockade against China, and is intervening in normal economic and trade exchanges between companies through administrative means. This behavior seriously undermines market rules and the international economic and trade order, and disrupts the stability of the global industrial and supply chain, which is not in the interests of any party," she added, noting that China will continue to monitor the situation and deal accordingly to the safeguard of its rights and interests.

The Chinese Embassy to the Netherlands said in a statement on Friday that the Netherlands' imposition of arbitrary restrictions under the pretext of "national security" is groundless and lacks any legal or moral basis.

It further said that the measures not only cause harm to the legitimate rights and interests of Chinese companies but also cause losses to Dutch companies.

"It constitutes an abuse of export control measures and a serious departure from the principles of free trade and international trade rules. China firmly opposes such actions," the embassy said.

As per the Dutch ministerial order, companies such as ASML, the world's exclusive maker of cutting-edge chip equipment, will now be required to apply for a permit to export certain types of advanced semiconductor manufacturing equipment.

ASML said it will comply with export regulations as set by the Dutch government, the EU, and the US, hoping that the measures will not have "a material impact" on its financial outlook published for 2023.