Netherlands signals it won’t follow chip ban

The Netherlands will defend its economic interests when it comes to the sales of chip equipment to China, a senior Dutch official said, sending a strong signal that the European country – home to worldleading chip company ASML – will not cave in to the US coercion despite the latter’s stepped-up pressure.

The move, coming after South Korea’s reported emphasis on not ruining exports to China as a precondition for joining the US-led “Chip 4” alliance, will likely bolster Japan’s and other relevant members’ resistance in following US’ dictates, as they learned that bowing to Washington’s pressure reaps no gain but risks giving up one of the world’s most lucrative semiconductor markets to competitors, and would even create discord in bilateral economic relations with Beijing, industry insiders said.

Dutch Foreign Trade Minister Liesje Schreinemacher told lawmakers on Tuesday that the Netherlands will make its own decision regarding ASML’s chip gear sales to China amid trade rule talks with the US, Bloomberg reported.

“It is important that we defend our own interests – our national safety, but also our economic interests,” Bloomberg quoted Schreinemacher as saying.

The response came after the Biden administration ramped up pressure on allies including Japan and the Netherlands, pressuring them to align with a sweeping ban it issued in early October that bars a wider range of advanced chip exports to China.

Industry observers said the Dutch government’s comment is a critical one, because it explicitly gives voice to the rising dissatisfaction toward the US, which has been reverberating among its allies, and is set to reinforce other countries’ decisions not to succumb to the US coercion.

Analysts also said the move is partly inspired by the tough stance of South Korea in joining the “Chip 4” alliance, a US-led small semiconductor circle with the ultimate aim of creating a “semiconductor barrier” against the Chinese mainland.