- US allies in careful balancing act as US-China tensions rise
- Dutch widens chip gear export curbs without naming China
According to Bloomberg article published on March 10, 2023, Japan has not yet made a decision regarding restrictions on exports of chip-making equipment, its trade minister said, underscoring US allies’ attempts to seek a middle ground between Washington and Beijing.
This week, the Netherlands, home to ASML Holding NV, said it would curb exports of some so-called immersion DUV lithography products to China. That adds to restrictions that already exist for the most cutting-edge lithography machines, which are critical to producing the world’s most advanced chips. The rules are expected to be published before the summer, according to a letter sent by the government’s minister of foreign trade to lawmakers on Wednesday.
“We will consider appropriate measures in light of developments in the Netherlands,” Japanese Trade Minister Yasutoshi Nishimura said at a regular news conference Friday. “Our understanding is that the Dutch announcement does not target a specific country.”
Many US allies are struggling to balance Washington’s concerns about China’s access to leading-edge technology with their reliance on the world’s biggest manufacturer.
Japan has agreed to join the US and Dutch curbs in principle, Bloomberg News reported in January, although the final details had not been worked out. Tokyo Electron Ltd. is a key supplier of machines used to make semiconductors, along with US rival Applied Materials Inc.
The Biden administration imposed sweeping constraints on China’s access to chips and chip-making equipment last year, arguing the moves were necessary to safeguard national security.
China has said the US efforts are counterproductive and an attempt to limit its national development. Beijing has poured billions of dollars into its technology industry, especially in strategic fields like semiconductors and artificial intelligence.
On Thursday, Nishimura’s Dutch counterpart Liesje Schreinemacher highlighted the delicate balance the Netherlands is trying to strike as tensions grow between the world’s two biggest economies. She characterized the relationship between the Netherlands and China as “mutual dependence” benefiting both countries.
“It’s a country-neutral policy, and so it’s not a ban on China in any way, or an export ban to China in any way,” the official told reporters in Stockholm. The most advanced systems that can be sold to China would require export licenses regardless of the destination, she added. The government will review applications on a case-by-case basis, to see if a product could threaten national security or could be used for military purposes.
