China says may retaliate against US’s ‘hegemonic’ chip war

    • An expanded ban on the ASML’s sales of certain high-end equipment to China took effect this month.
    • An expanded ban on the ASML’s sales of certain high-end equipment to China took effect this month. PHOTO: PIXABAY
    Published Tue, Jan 23, 2024 · 07:10 AM

    THE European Union can avoid getting swept up into China’s response to United States chip-equipment curbs, Beijing’s ambassador in The Hague said in an interview with a Dutch newspaper.

    “If the Americans treat us in a hegemonic manner, we will of course respond,” said Tan Jian, Chinese ambassador to the Netherlands, in an interview with NRC published on Sunday (Jan 21). “But our relationship with the EU should not be affected.”  

    The Netherlands is home to ASML Holding, which makes the world’s most advanced chipmaking gear and has been drawn into a geopolitical spat as the Biden administration seeks to curtail Beijing’s ambitions in the semiconductor industry. An expanded ban on the company’s sales of certain high-end equipment to China took effect this month.

    “The US has stretched its idea of security far, too far, even to matters that have nothing to do with military risks,” he said. “And they are putting pressure on their allies to do the same.”

    Earlier this month, ASML said it cancelled shipments of some machines to China after the Dutch government partially revoked export licenses. The move was at the request of US President Joe Biden’s administration and came weeks before the ban took effect, Bloomberg reported earlier this month.

    The White House has made it clear to China that the US is “trying to de-risk, not de-couple”, White House spokesperson John Kirby said on Monday when asked about Tan’s comments.

    “Our decisions in terms of these export licenses is really designed specifically to make sure that we can continue to protect US national security,” Kirby continued, saying companies make their own decisions.

    Tan said dialogue with the Dutch government needs to improve to prevent the situation from getting worse. Chinese companies were finding it more difficult to operate in the bloc due to increased controls, political pressure and disinformation, according to Tan.

    “European China policy is confusing,” he said. “China is referred to as a cooperation partner, an economic competitor and a systemic rival.” BLOOMBERG

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