Chip technology from ASML

Xi warns of confrontation through high-tech embargoes

During talks with Dutch Prime Minister Mark Rutte, China's President Xi Jinping warned of the consequences of Western export barriers for high technology. "Artificially erecting technological barriers and disrupting industrial and supply chains will only lead to division and confrontation," said Xi in Beijing on Wednesday.

The Chinese people also have a legitimate right to development and "no power can stop China's scientific and technological development and progress", Xi said. His comments were prompted by the Netherlands' decision to restrict the export of chip production machinery to China at the request of the USA.

USA urges export and maintenance freeze
The Netherlands-based ASML Group is the world's leading supplier of such systems. According to a media report, the USA is also pushing for a ban on the maintenance of machines that were delivered before the current sales ban. For ASML, China is the world's second most important sales market after Taiwan.

Diplomatic tightrope act for Rutte
Rutte tried to defuse the dispute in view of the diplomatic tightrope act during his visit to Beijing. "When it comes to our semiconductor sector and companies like ASML and we have to take measures, the Netherlands makes sure that these are never aimed at a specific country and we always try to limit the impact," he said.

Rutte's talks with Xi are expected to revolve around the maintenance of ASML equipment. Dutch Trade Minister Geoffrey van Leeuwen, who is accompanying Rutte on his trip to China, described the defense of ASML's interests as his "number one priority" in a newspaper interview. If the Netherlands sticks to its tough course, China could place more orders with Japanese competitors such as Nikon and Canon. However, Japan is also under pressure from the US export embargo.