EU Supports US on Blocking Exports of Chip-Making Supplies to China

The European Union is taking a stand on Friday regarding the United States' effort to block exporting semiconductor-making supplies to China and stated that they, along with the United States, cannot allow China to access the most advanced technologies.

(Photo : KENZO TRIBOUILLARD/AFP via Getty Images)
EU commissioner for internal market Thierry Breton speaks during a press conference with European Commission vice-president in charge for alues and Transparency Vera Jourova, on the Media Freedom Act at the EU headquarters in Brussel, on September 15, 2022.

EU's Support

EU Internal Market Commissioner Thierry Breton stated at the Center for Strategic and International Studies that the bloc has the full support of the United States to choke China's semiconductor industry. South China Morning Post reported that the US has the bloc's full commitment regarding this matter.

"We fully agree with the objective of depriving China of the most advanced chips. You will always find Europe by your side when it comes to ensuring our common security in technology, " Breton stated.

Breton also urged the alignment of several companies to reduce collective reliance on Asia despite the differences, as he cites cooperation on 5G telecoms technology and semiconductors. He added that any action should be limited to what is necessary from a security point of view.

The US and EU previously worked together on 5G cybersecurity to remove high-risk suppliers from both of their networks. By following this with the ongoing Chinese investment into infrastructure on semiconductors, Breton sees a strong alignment between the two parties regarding this agenda.

Based on Politico's report, Breton stated EU's support just hours after the deal of the United States with the Netherlands and Japan.

Ever since October 2022, the Biden administration restricted exports of high-end chips and chip-making technology to China. The EU has been pressed by the US to take similar restrictions but the block has been cautious to take a stand.

Adding to this, Dutch Trade minister Liesje Schreinemacher stated that the Netherlands will not be complying with the United States immediately as they consult with several allies in Asia and the EU. ASML Holding is the largest company and the world's leading manufacturer of chip-making equipment located in the Netherlands.

The Dutch government has restricted the company to ship its most advanced machines to China since 2019. Not until ASML sold $2.17 billion worth of much older machines to China in 2021.

US' Chips and Science Act

President Biden also signed the Chips and Science Act into law as an effort to boost American semiconductor research, development, and production through federal subsidies. Aside from this, it also cuts China out of chip supply chains as this law prioritizes local manufacturing.

Meanwhile, the European Union is expected to pass its own version of this called the EU Chips Act this year. This will be doubling the shares of the continent for the global chip manufacturing capacity to 20%.