Beijing Fires Back: Accuses US of Strong-Arm Tactics in Blocking Crucial Export Through Ally

According to Bloomberg, the White House pressured semiconductor equipment firm ASML to cancel proprietary machine shipments to China.

Beijing Accuses US of Coercing Ally Into Blocking Key Export to China (Photo: Google)

ASML Yields to U.S. Pressure: Postpones Shipments to China Amidst Export Ban Threat

The Dutch semiconductor equipment company ASML has reportedly bowed to White House pressure to postpone scheduled shipments of patented gear to China, weeks before a ban on high-tech machinery exports takes effect at the end of January. This judgment follows the Netherlands canceling ASML’s hardware export license. National security concerns have prompted the Biden administration to limit China’s technology progress, particularly in AI and supercomputing. China has vowed to restrict U.S. access to crucial minerals for future technology.

Chinese Foreign Ministry spokesperson Wang Wenbin slammed the U.S. for overstretching national security and forcing other nations to join its technological boycott. Wang stressed the chipmaking industry’s globalization and accused Washington of “hegemonic and bullying practices” that violate international trade laws. ASML is the only firm worldwide that makes EUV lithography machines for advanced semiconductor fabrication. November customs data showed China imported such devices in anticipation of limitations.

Beijing has encouraged the Dutch government to overlook national security concerns and give China advanced chipmaking equipment. Wang asked the Netherlands to “respect the spirit of contract” and consider both countries’ interests and industrial stability.

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ASML Clarifies U.S. Export Controls, Expects Limited Impact on 2023 Bottom Line

The EUV lithography machine manufacturer ASML said it had more clarity on U.S. export control restrictions. Updated export limits and the Dutch government’s partial revocation of its license for certain lithography machines are unlikely to affect the company’s 2023 bottom line.

The U.S. and China have fought over crucial technologies with tit-for-tat measures. Modern technologies depend on the semiconductor industry, making it a geopolitical flashpoint. Huawei recently announced a smartphone with an advanced locally built 7-nanometer processor despite U.S. sanctions on the business and Chinese chipmaker SMIC, calling export regulations into question.

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