Chinese President Xi Jinping Warns Dutch PM over export ban of ASML manufactured semiconductor chips

Chinese President Xi Jinping did not mince his words to Dutch Prime Minister, Mark Rutte during the latter's current visit to Beijing. The two countries have been at a crossroads ever since September 2023, when the Netherlands imposed export restrictions on the ASML manufactured semi-conductor chips to the Asian country. 

The Netherlands' ploy to impose export restrictions came shortly after the United States' decision not to offer advanced processor chips to China. The States had urged its allies to follow suit citing privacy and security reasons and the Dutch paid heed to it. However, understandably this did not go down well with China and Jinping made a resounding statement to the Dutch PM. 

The Netherlands imposes an export ban on ASML-produced semiconductor chips

ASML, the world's largest semiconductor chips, is also the sole manufacturer of extreme ultraviolet lithography machines. These devices are critical for producing all types of automobiles and smartphones. Such has been the impact of the export ban, that ASML has not sold a single unit of the ultraviolet lithography machines to China.

Xi Jinping warned that such regressive decisions to bar his country from using ASML semiconductor chips would not be able to stop the technological advancements in the country. He also claimed that these restrictions in the technology industry would eventually lead to "division and confrontation" in the world. 

"The Chinese people also have the right to legitimate development, and no force can stop the pace of China’s scientific and technological development and progress. Creating scientific and technological barriers and severing industrial and supply chains will only lead to division and confrontation," Jinping said as reported by CCTV. 

Mark Rutte tried to justify the export ban by claiming that such bans are never made to impact one country while speaking about their strained relationship with China regarding these matters. “We always try to make sure the impact is limited,” Rutte said according to CNBC. 

However, Rutte has bigger domestic problems to address, after ASML, their largest company recently threatened to leave operations in the Netherlands owing to their latest anti-immigration norms. These norms have heavily affected the company's goals of increasing its workforce with employees from other countries.

Although Mark Rutte has downplayed the conflict between the two countries due to the export ban, it remains to be seen whether they change their stance on the subject, especially after a grave warning from the Chinese President. 

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