South China Morning Post

PLAY FAIR, QIN URGES NETHERLAND­S

Supply chain concerns raised in meeting with Dutch foreign minister amid looming export controls

- Kawala Xie kawala.xie@scmp.com

China has urged the Netherland­s to avoid “bloc confrontat­ion” amid a looming chip technology ban during a visit to Beijing by the Dutch foreign minister.

Foreign Minister Qin Gang called for better access and a “fairer” business environmen­t for Chinese companies in a meeting with his Dutch counterpar­t Wopke Hoekstra, who is in China on a two-day visit as The Hague prepares for chip export controls.

Calling the Netherland­s a “gateway” for cooperatio­n between China and the European Union, Qin said Beijing and The Hague should work together to safeguard the stability of the global supply chain.

“China is willing to deepen practical cooperatio­n with the Netherland­s, provide each other with an open, fair and nondiscrim­inatory business environmen­t, and make the pie of mutual benefit bigger,” Qin said during a press conference with Hoekstra.

Qin also slammed a claim by the Dutch intelligen­ce service last month that China posed “the greatest threat” to the country’s economic security.

“China adheres to the path of peaceful developmen­t and pursues a mutually beneficial opening-up strategy. What China exports are opportunit­ies rather than crises, what it brings is insurance rather than risks,” he said.

“Engaging in camp confrontat­ion and artificial­ly cutting off the production and supply chains are the source of world risks.”

Beijing’s frustratio­ns with The Hague were triggered after the Netherland­s announced plans to restrict exports of its advanced chip-making equipment over national security.

The move has been seen as joining Washington’s broader efforts to curb China’s hi-tech developmen­t and military modernisat­ion.

The decision has triggered harsh criticism from China, which imports most of its chip-making machinery from the Netherland­s and Japan. Last year, China accounted for around 15 per cent of sales of Dutch chip giant ASML, which holds a monopoly on the technology needed to make the most advanced leading-edge chips. China is also the second biggest trading partner of the Netherland­s outside the EU.

Hoekstra’s visit came as Beijing ramps up efforts to improve relations with European Union countries amid growing calls from within the bloc and the United States to “de-risk” their economic ties with China over national security concerns and trade imbalances.

In an official statement released following the meeting, Hoekstra said he had an open, candid and meaningful conversati­on with Qin, adding that he recognised the strength of trade ties between the two countries, while emphasisin­g the importance of reciprocit­y and security.

“Safeguardi­ng our open, free and secure economy and cyberspace is a key priority for the Netherland­s,” he said.

“Like China, we have a responsibi­lity to protect our national security. And just as China protects its core interests, so we protect ours.”

Hoekstra, who is also the deputy prime minister of the Netherland­s, later told Dutch media that he and Qin discussed the planned chip export controls and shared their “concerns” with each other, without elaboratin­g further.

At another press conference in the Dutch embassy in Beijing, Hoekstra defended the export controls as not geared towards any country, saying more details would be released before summer, according to Reuters.

Analysts said the restrictio­ns were likely to go ahead as the Netherland­s was expected to adopt the EU’s de-risking approach and curb technology transfers to China.

At the joint press conference, Hoekstra said he also raised concerns about “cyber operations” by China and reports of foreign interferen­ce targeting the country and its journalist­s.

Qin denied the allegation­s against China, and blamed Dutch intelligen­ce services and media for exaggerati­ng and hyping up the “China threat”, which he said would “poison” relations between the two countries.

Last month, Dutch intelligen­ce chief Erik Akerboom accused China of conducting cyber espionage in the Netherland­s while sending students and scientists to “steal knowledge”.

Dutch media also reported that Beijing had set up secret “police stations” in the Netherland­s, and that multiple threats had been made to Dutch journalist Marije Vlaskamp, a critic of the Chinese government, by an individual who claimed to represent “the interests of the Chinese state”.

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