China Lambasts Netherlands for Following US in Restricting Chip Access

China criticized the Netherlands on Thursday, March 9, for following the United States to expand restrictions on Chinese access to technology that could be used to make processor chips that Western governments claim might be used to commit human rights violations, according to a report by AP.

The production of processor chips is becoming more critical as China develops its own chip industry and high-tech weaponry. In October, the US blocked China's access to the most advanced chips production tools and is urging other nations, including Europe and Asia, to tighten their own regulations.

Greater Restrictions

The Dutch trade minister stated in a letter to lawmakers on Wednesday that national security necessitates greater restrictions on the export of technology that utilizes ultraviolet light to etch circuits onto the most sophisticated chips.

ASML, based in Veldhoven, Netherlands, is the sole global provider of such technology, and it employs this tech to create advanced semiconductor chips, according to AP.

Although the Dutch government has prohibited ASML from exporting some of its machines to China since 2019, the company had been shipping less advanced lithography systems in the country.

However, a foreign ministry spokeswoman from China expressed displeasure that a "single country," most likely referring to the US, was attempting to protect its own hegemony by utilizing national security as a pretext to "deprive China of its right to development."

"We firmly oppose the Netherlands's interference and restriction with administrative means of normal economic and trade exchanges between Chinese and Dutch enterprises," spokeswoman Mao Ning said in a statement quoted by AP.

China's Appeal

Mao appealed to the Netherlands to protect the stability of the international industrial and supply chain. This appeal comes as China lacks access to ASML etching technology, a critical hindrance to its effort to build a domestic chip industry.

While Chinese vendors can produce low-end chips used in autos and most consumer electronics, they are unable to produce high-end products such as those used in smartphones, servers, and other advanced technology.

Dutch Prime Minister Mark Rutte and US President Joe Biden held a meeting in January to discuss ASML's chip machines.

ASML's EUV (extreme-ultraviolet) equipment is capable of etching microscopically precise circuits into silicon using light, which enables circuits to be packed more closely together. This results in an increase in their speed and a decrease in power consumption.

However, this technology is now the focus of a global power struggle as Western governments fear that it could be used by China to develop advanced weapons or be used for human rights abuses. As a result, they have imposed strict export controls on the technology, limiting China's access to it.