AMSTERDAM, March 22 (Reuters) - The Dutch prime minister
will travel to Beijing next week for a meeting with Chinese
President Xi Jinping on "economic ties", the Dutch government
said on Friday, a meeting likely to be strained over computer
chip export policy matters.
The Dutch government this year began denying licences for
ASML, the biggest supplier of equipment to computer
chip makers, to export many of its products to China, following
pressure from the United States.
ASML dominates the global market for lithography systems,
multi-million dollar tools essential in helping to create the
circuitry of computer chips.
One of Xi's top policy goals has been to help China build up
its domestic chipmaking industry, spending billions on
subsidies.
Meanwhile the U.S. government is seeking to undermine
China's ability to make its own chips, and has enlisted aid from
the Dutch and Japanese governments in restricting equipment
exports.
Under rules in place since Jan. 1, ASML has said it no
longer expects to receive licences from the Dutch government to
ship its more advanced "DUV" tool lines to Chinese customers.
But it remains unclear how much of the equipment ASML has
already sold to Chinese customers it will be able to continue to
service.
It sold gear worth more than 6 billion euros ($6.5 billion)
to Chinese chipmakers in 2023, making China ASML's
second-largest market behind Taiwan and ahead of South Korea.
Without spare parts, ASML's machines are expected to become
impossible to operate within weeks.
During the March 26-27 visit, Dutch Prime Minister Mark
Rutte is expected to meet with Xi and premier Li Qiang, while
Dutch Trade Minister Geoffrey van Leeuwen is also attending and
expected to meet with Chinese Trade Minister Wang Wentao.
"They will discuss economic cooperation opportunities, the
importance of a level playing field, and the importance of equal
market access," the Dutch government said in a statement.
($1 = 0.9244 euros)