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This file photo shows the logo of chip equipment maker ASML at its booth during Semicon China, a trade fair for the semiconductor industry, in Shanghai, China June 29, 2023. [Photo/Agencies]
Following its earlier decision to stop exporting state-of-the-art extreme ultraviolet lithography systems to China, the Dutch government announced on Friday it would expand those controls to deep ultraviolet immersion lithography tools.
The idea is to serve Washington’s purpose of curbing Chinese chipmaking capabilities.
Netherlands-based ASML is the major manufacturer of the world’s most advanced chipmaking equipment. The company has thus found itself a hostage in the United States’ geopolitical game. For its use of US-developed technologies, ASML has been under mounting pressure from Washington to facilitate its alleged strategic competition with China.
That the Dutch government has finally chosen to surrender a significant national economic interest to meet a US demand is certainly another very bad precedent for international trade. It undermines Chinese and Dutch national interests as well as their normal economic and trade ties, and will have greater negative impacts in the years to come.
The Chinese Commerce Ministry was correct in stating that the move harms the “common interests of Chinese and Dutch enterprises”, which are obviously multidimensional. To justify such anti-market behavior, Washington has put its competition with China, so far mostly in trade and technology, as driven by “national security” concerns. So did the Dutch trade minister on Friday.
But this is just a fig leaf to conceal the US’ real intent. As ASML CEO Christophe Fouquet said, “To make the case that this is about national security is getting harder and harder”. That is because the continuous US push for more and more restrictions has, as he said, become “economically motivated”.
The Dutch government is in fact sacrificing tremendous national economic interests — by confining an otherwise thriving domestic business and its foothold in a profitable market — to make sure the US benefits economically. After all, ASML is in a global market where there is no meaningful competition, and China remains its largest market.
Beijing is clear-eyed about the Dutch government’s latest export controls being part of the US’ designs to bring the export rules of allied countries in line with its own, for the sole benefit of itself.
In recent years, in order to maintain its global hegemony, the US has continued to “coerce certain countries to tighten export control measures on semiconductors and (related) equipment”, the Chinese Ministry of Commerce said.
But the US’ bid to form a “small yard with a high fence” is only driving China to double down on developing its domestic capabilities. The hegemonic attempt to hobble China’s technological development will ultimately fail, but in the meantime, the US’ cash register is ringing as it extorts money from others.
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