At the end of January it was already leaked that the Netherlands, the United States and Japan had reached an agreement on the export restriction of chip technology to China. These are now the most advanced DUV systems of ASML, the most modern EUV machines of Veldhoven company could not be exported to China.
Not amused
China is not amused. “They said they are against the use of administrative tools by the Netherlands to limit the normal economic trade exchange between Chinese and Dutch companies,” Eigenraam says, adding that Beijing was not surprised. ‘They knew, of course, that it was going to happen (…). Of course they suffered for some time, also from all those previous export restrictions.’
“Of course they knew it was going to happen.”
According to Eigenraam, China is accelerating its efforts to strategically become less dependent on external parties by accelerating technological innovation. On Tuesday, the government presented here to the Chinese parliament, which meets this week in Beijing, a plan to reorganize the ministry of science and technology. From now on, that ministry will focus only on the development of the high-tech industry.”
Clapping to clap
The export ban on ASML machines is another blow to China, which has already suffered all kinds of American export bans. These restrictions not only frustrate China’s ambition to become a world leader, but also greatly hinder Chinese business. While outsourcing manufacturing to low-wage China has been the mantra of Western business for decades, post-Covid, the apparent vulnerability of long supply chains and rising geopolitical tensions, more and more companies are reducing their production.
‘And that has consequences for smaller companies in China. Apple’s suppliers, for example, such as Foxconn, naturally have far fewer orders. Also consider Huawei. The latest Huawei phones could no longer fit the latest chips. Thus, the turnover of Huawei’s telephone branch also collapsed.
What will China actually do to make a change in the technology sector? Designate industrial parks and special economic zones where companies can congregate. A lot of money will be invested. Last year they already said they want to invest $150 billion in the chip industry by 2030.’
“It’s just a big question whether this will now even take it to the next level.” Because China has been working for at least ten years to become more independent from a technological point of view. And the chip industry, for example, has invested a lot of money in recent years.
According to Beijing, the new restrictions could affect China, the Foreign Ministry said it was against the “politicization of economic cooperation and trade”. According to China, the Netherlands should look to its own interests.