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Dutch PM to meet China's Xi as chip export policy strains ties
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Dutch PM to meet China's Xi as chip export policy strains ties
Mar 22, 2024 8:04 AM

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)

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