Chinese President Xi Jinping Asserts Unstoppable Technological Progress in Semiconductors Amid Strained Relations with Netherlands

In a meeting with Dutch Prime Minister Mark Rutte, Chinese President Xi Jinping emphasized the unstoppable pace of China's scientific and technological progress. Xi declared that the Chinese people have legitimate development rights and that no force can hinder their advancement in these areas. The meeting, which took place in Beijing on Wednesday, focused on various topics, including the critical semiconductor industry.

Relations between China and the Netherlands have faced tension, particularly due to the joint action by the Netherlands and the U.S. in blocking exports of advanced chip technology to China. This move was motivated by concerns that the technology could be diverted for military purposes. As a result, Dutch tech giant ASML has been prohibited from exporting extreme ultraviolet lithography machines to China, a crucial component for chip manufacturing which is currently exclusively produced by ASML.

Barriers in Chip Technology Export

Further complicating the situation, the Netherlands also halted the export of some deep ultraviolet lithography systems to China, which are used for making slightly less advanced chips. These actions caused Beijing to urge the Netherlands to maintain an objective and fair position, uphold market principles, and protect the shared interests of both countries and their companies.

President Xi emphasized that creating scientific and technological barriers and disrupting industrial and supply chains will only lead to division and confrontation. He asserted that cooperation is the only way forward and that "decoupling and breaking the chain" is not an option. Furthermore, Xi expressed China's readiness to continue dialogue with the Netherlands and called for a fair and transparent business environment for Chinese enterprises in the country.

Netherlands' Response

Prime Minister Rutte assured that the Netherlands endeavors to limit the impact of export restrictions related to the semiconductor industry and companies like ASML. Rutte also stated that decoupling is not a policy choice for the Dutch government, as any action undermining China's development interests will ultimately backfire.