The Netherlands has apparently refrained from delivering advanced technology to a Chinese state-owned company under pressure from the United States. The American government allegedly pressured Dutch Prime Minister Mark Rutte in 2018 and 2019 to prevent the sale.
After the Dutch technology company ASML had already decided in 2017 to supply a high-end EUV chip machine to China, the Netherlands initially granted an export license. That process appears to have been halted for unexplained reasons.
Early in 2018, the US tried to block the sale, but this only proved possible if such a machine contains 25 percent American components. ASML’s EUV machines do not meet that threshold. According to news agency Reuters, the US is currently considering adjusting the rules in this regard.
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ASML is one of the world’s leading chip machine manufacturers and counts major clients such as Samsung and Intel. Additionally, it is the sole maker of extreme ultraviolet (EUV) machines. These are very advanced machines used in the chip production process. These machines are essential for continuing to produce chips for computers and phones in the coming years.
Officials from the US Department of Defense reportedly discussed the matter multiple times at the Dutch embassy in Washington. Furthermore, the US put pressure on Rutte personally twice within a short period, during a meeting with Secretary of State Pompeo. A month later, the prime minister visited President Trump for a second time.
In early November, the Japanese business newspaper Nikkei reported that ASML had put the order from the Chinese manufacturer SMIC on hold. Sources told the newspaper that ASML did not want to upset the Americans.
ASML confirms that it is waiting for an export license from the Dutch Ministry of Economic Affairs because the previous license has expired. It is unclear why export licenses in the Netherlands apparently have time limits and/or are temporary.
The United States is also campaigning under European governments against economic collaboration with the Chinese communications giant Huawei. This concerns the planned European purchase of Chinese equipment that could enable Beijing to spy on telephone and internet networks.
Within the European Union, there are increasing calls for EU countries to develop large and costly technology together, but this does not gain traction due to mutual disagreements and competition. This has largely succeeded with the European aircraft manufacturer Airbus as a counterpart to American Boeing.
However, in many business sectors and industrial fields, European cooperation is slow to get off the ground. As a result, European countries continue to depend on purchasing many of their needed products elsewhere in the world.