The Dutch government has declared that, at the request of the US, it will limit the transfer of certain chip manufacturing equipment to China.
China reacted angrily to the decision.
“We have taken this step in the interest of our national security,” Dutch Trade Minister Liesje Schreinemacher stated, warning that the chip fabrication equipment could be used for military reasons in China.
Simultaneously, the Chinese Embassy in the Netherlands condemned the move as a “abuse of export control measures” that violated trade laws.
The new export regulations, which take effect on September 1, will require export licences to be obtained before moving certain chip manufacturing equipment out of the Netherlands.
In addition to the statement, the Dutch government provided a list of which types of chip manufacturing equipment will require export licences.
The declaration in Amsterdam comes after the United States signed an agreement with the Netherlands and Japan, both of which have chip manufacturing businesses, to reduce shipments to China.
In March, the Netherlands’ ASML, Europe’s largest technological corporation, announced that export licences would now be necessary for the export of specific equipment in general.
In October 2022, the United States curtailed the exports of sophisticated chip manufacturing equipment by American enterprises. Simultaneously, it pushed other governments to impose similar limitations.
China condemned the US move at the time. Other things now prohibited from being shipped from the United States to China include 5G wireless equipment.
Meanwhile, China has urged the Netherlands to “immediately correct its wrongdoings,” stating that such trade restrictions would be detrimental to both countries.
According to a Dutch government spokeswoman, the limitations will apply to no more than 20 transactions per year, representing a “limited part of the total product portfolio of the companies that fall under this rule.”
It is worth noting that European Union countries often restrict exports for security reasons. In reality, only a few European countries produce sophisticated chip manufacturing equipment.
