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China's Xi Jinping to Dutch Prime Minister: “Export restrictions won't stop us”

China's Xi Jinping to Dutch Prime Minister: “Export restrictions won't stop us”

 


China will not let scientific or technological obstacles from other countries hinder its technological progress. This is the message sent Wednesday by Chinese President Xi Jinping to Prime Minister Mark Rutte during his visit to Beijing. Xi was referring to export restrictions imposed by the Netherlands on ASML under pressure from the United States.

Although the veiled threat was framed in terms of “cooperation in a multipolar world,” Xi Jinping argued that creating scientific and technological barriers and breaking industrial and supply chains would only lead to division and confrontation. Rutte responded that severing economic relations was not the Netherlands' goal, nor did it harm China's technological development.

Xi's comments follow the Netherlands' decision to impose export restrictions on advanced chip machines. This includes ASML’s extreme ultraviolet (EUV) lithography scanners. However, China will not let its technological progress be hindered, Xi said, emphasizing his country's right to development. “Openness and cooperation are the only choice” in a globalized market, he said.

Tensions between the United States and China

The export restrictions stem from tensions between the United States and China over the latter's access to Western technologies, such as high-end processors for military applications. The United States is pressuring its allies like the Netherlands to join.

As a result, Chinese semiconductor makers have less access to essential equipment, such as lithography tools, needed to make the chips. Other restrictions include banning Chinese customers from receiving powerful AI hardware from Nvidia. Western countries also ban Huawei's 5G and other hardware over security concerns.

In response to restrictions imposed by Washington, China decided that its municipalities, ministries and other government agencies would no longer be allowed to use Windows computers or Intel and AMD chips. The move was intended to deal a major blow to the US chip market.

Keeping Chinese Technology Obsolete

The United States' goal is to keep Chinese chip technology obsolete. However, ASML CEO Peter Wennink, who has seen trade with China drop significantly due to restrictions, warned that such a strict approach could backfire. The pace of innovation in China would accelerate significantly as it would have to source advanced processors itself. For example, the country is investing tens of billions of euros in Huawei to make it a chip powerhouse.

Although the Netherlands generally maintains friendly ties with China, with many companies investing there, its complacent attitude towards the United States is causing resentment. China dresses its rhetoric in a veil of diplomacy by emphasizing cooperation. Yet the country appears determined to develop as a technological superpower regardless of restrictions imposed by other countries under the leadership of the United States.

Read also : “ASML halted shipments to China under pressure from the United States”

Sources

1/ https://Google.com/

2/ https://www.techzine.eu/news/privacy-compliance/118241/chinas-xi-jinping-to-dutch-prime-minister-export-restrictions-wont-stop-us/

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