China’s growth has been clear, with its automotive and technological proposals penetrating the West and shaking up the companies that once dominated. According to the Chinese President, “no force can stop the pace of China’s progress”.
Relations between China and the Netherlands have been tense since they joined the United States in blocking exports of advanced chip technology to China, for fear they could be used for military purposes, as recalled by CNBC.
Dutch technology giant ASML has been blocked from exporting Extreme Ultra Violet (EUV) lithography machines to China. This is the only company capable of manufacturing such machines currently.
This equipment is crucial for chip manufacturing and is used by companies like Taiwan's TSMC to manufacture the smallest and most sophisticated chips. In turn, semiconductors are critical components that can be found in almost everything, from smartphones to cars – in fact, we know them from a crisis that completely shook a series of industries, during the COVID-19 pandemic.
Chinese president calls for fair and transparent trade relations
After China criticized the Government of the Netherlands for such trade barriers, Chinese President Xi Jinping stated, on Wednesday, that “the creation of scientific and technological barriers, as well as the cutting of industrial and supply chains, they will only lead to division and confrontation.”
The Chinese people also have legitimate development rights, and no force can stop the pace of China's scientific and technological progress.
Xi Jinping said to Dutch Prime Minister Mark Rutte when they met in Beijing for talks on areas such as the critical semiconductor industry, according to Xinhua News Agency.
According to the President of China, in addition to cooperation being the only way, “dissociating and breaking the chain” is not an option.
As reported by the Chinese state press, Rutte responded, saying that dissociation is also not a political option for the Government of the Netherlands, “since any act that harms China's development interests will only have negative consequences”.
Furthermore, he explained that the Netherlands tries to ensure that export restrictions, when related to the semiconductor industry and companies like ASML, are never directed at a single country.
We always try to ensure that the impact is limited.
Said Mark Rutte, according to Reuters.
The President of China said the country is ready to continue dialogue with the Netherlands and encouraged them to “provide a fair and transparent business environment for Chinese companies”.
