US-China chip war: Netherlands possibly out of harm's way in new export restrictions
The United States is cracking down on China's semiconductor industry again. A blacklist of 140 Chinese companies has been drawn up.
Published on December 2, 2024
The United States is tightening restrictions on chip exports to China again, with far-reaching consequences for 140 Chinese companies. This drastic measure, aimed at slowing China's AI development, may not hit Dutch companies as hard as expected. According to the Financial Times, the Netherlands will receive an exception because our country has already set its restrictions. However, Dutch ASM would fall under the new sanctions. The stakes are high: advanced computer chips are crucial for AI development and military applications. With Chinese chip imports of €1.11 billion by October 2024 alone, it becomes clear what is at stake in this technological power struggle.
New measures
The United States has reintroduced strict export restrictions to limit China's access to advanced semiconductors. These measures target 24 types of chip machine equipment and include a blacklist of 140 Chinese companies. American companies and their foreign partners using American technology will be required to comply with these rules.
Dutch companies and exemptions
According to reports by the Financial Times, the Netherlands is not at the center of the new sanctions, in part because it already has its own restrictions in place. ASML, a significant player in the chip machine market, is examining the possible implications of the new rules but does not expect a major long-term impact. ASM, another Dutch company, would be covered by the sanctions but has not yet given a definitive response.
Impact on the global market
The impact of these measures is being felt globally. The US government and allies are trying to slow China's rise in AI and military capabilities. Chip element exports to China reached some €1.11 billion in October 2024, underscoring the economic magnitude of such measures.
Reactions from China
China has reacted strongly to the restrictions, accusing the United States of misusing national security concepts to undermine Chinese economic growth. Chinese Foreign Ministry spokesman Mao Ning strongly criticized the U.S. decisions.
The U.S. is taking this step as part of a broader strategy that began under the Trump administration. The focus is on maintaining a technological edge in AI and defense. The importance of these technologies to national security and economic growth makes the stakes in this chip war extremely high.
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