Biden urges the Netherlands to back his restrictions on chip sales to China

US President Joe Biden hosted Dutch Prime Minister Mark Rutte at the White House on Tuesday, where he urged the Netherlands to support new US restrictions on the export of chip-making technology to China, a key part of Washington’s strategyin its rivalry with Beijing.

During a brief appearance in front of reporters before their meeting, Biden said that he and Rutte have been working on “how to maintain a free and open Indo-Pacific” to “meet the challenges from China.”

“Simply put, our companies, our countries have so far been on par in what we have done in our investment for the future. So today I look forward to discussing how we can further deepen our relationship and secure our supply chains to strengthen our transatlantic partnership,” he said.

ASML Holding NV, maker of the world’s most advanced semiconductor lithography systems, is headquartered in Veldhoven, making the Netherlands key to Washington’s chip push against Beijing.

Ahead of Rutte’s visit, Dutch Trade Minister Liesje Schreinemacher said the Netherlands is consulting with European and Asian allies and will not automatically accept new restrictions the US Commerce Department launched in October. “You can’t say they’ve been putting pressure on us for two years and now we have to sign on the dotted line. And we won’t,” she said.

Rutte did not mention semiconductor theme before his meeting with Biden, but focused on Russia’s invasion of Ukrainewhere NATO allies have been working together to support kyiv.

“Let’s stick very close this year,” Rutte said. “And hopefully, things will move forward in a way that is acceptable to Ukraine.”

China is one of the largest customers of ASML. CEO Peter Wennink downplayed the impact of US export control regulations in October.

“Based on our initial assessment, the new restrictions do not change the rules governing lithography equipment shipped by ASML outside of the Netherlands and we expect the direct impact on ASML’s overall shipping plan for 2023 to be limited,” he said.

propping up allies

Biden has been propping up allies, including the Netherlands, Japan and South Korea, home to leading companies that play critical roles in the industry’s supply chain, to limit Beijing’s access to advanced semiconductors.

Last week he hosted Japanese Prime Minister Fumio Kishida, who said he backed Biden’s bid but disagreed to match sweeping restrictions targeting China’s semiconductor and supercomputing industries.

US officials say the chip export restrictions are necessary because China can use semiconductors to improve its military systems, including weapons of mass destruction, and commit human rights abuses.

October restrictions follow passage of the CHIPS Act of 2022, by the US Congress in July, to strengthen domestic semiconductor manufacturing, design and research, and bolster US chip supply chains. The legislation also restricts companies that receive US subsidies from investing in and expanding state-of-the-art chip manufacturing facilities in China.

[Con información de AP]

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