On 28 March 2024, Chinese President Xi Jinping said that Netherlands Prime Minister Mark Rutte’s technological restriction attempts cannot stop the country’s advancement. In 2023, the Netherlands imposed an export license requirement for sales of machines that can produce advanced processor chips. That movement came after The United States blocking China’s access to advanced chips and the equipment to produce them and urging its allies to follow the same path.[1]
In a news that was published on the internet by the state television CCTV, chip machines were not told but it is reported that Xi stated that creating barriers in science and technology and fragmenting industrial and supply chains would lead to division and conflict. According to CCTV, Xi said: “The Chinese people also have the legitimate right to development, and no power can halt China’s pace of scientific and technological development and progress.”[2]
Dutch company ASML is the only producer of machines that use extreme ultraviolet lithography to produce advanced semiconductors in the world. In 2023 China has become the second-biggest marketplace of ASML and Before the licensing requirement came into effect, purchases of equipment by Chinese companies constituted 29% of its revenue. Speaking to journalists after the meeting, Rutte avoided going into the details of the discussions. In his statement, Rutte said the following:[3]
“What I can tell you is… when we need to take measures, they are never specifically targeted at any one country, always aimed to be limited in their effect, not affecting the supply chain, and therefore, we try to ensure they don’t impact the overall economic relationship.”
During his trip, accompanied by Trade Minister Geoffrey van Leeuwen, the Dutch leader stated that the most important issue for him in his meetings with Xi and Chinese Prime Minister Li Qiang was the war in Ukraine. Rutte emphasized that it is important for China to understand that “Russia is a direct security threat to us because if Russia succeeds in Ukraine, it will be a threat to all of Europe. This will not be limited to Ukraine.” He also added that he asked the Chinese leaders to “put considerable weight on Russia – which, in my opinion, they can do very cautiously – but to put as much weight as possible on influencing the course of events in Russia.” [4]
A short while ago, ASML -the biggest company in the Netherlands- made a threat to abandon the country because of anti-immigrant policies that can affect the hiring capacities of the company with the company’s abilities and the government officials exerted a significant effort to prevent the company from separating. Van Leeuwen stated in an interview with The FD, an economic newspaper published in the Netherlands this week, that protecting the interests of ASML is their top priority, but he also acknowledged that national security takes precedence over economic interests. [5]
Beijing has repeatedly criticized the United States for attempting to hinder China’s economic development by restricting access to technology. In response, Xi has launched a campaign to develop domestic chips and other high-tech products. Foreign Ministry spokesperson Wang Wenbin stated in January, “China has always opposed the US exaggerating the concept of national security and creating various excuses to coerce other countries into imposing a technological blockade against China.” [6]
Firstly, China’s attempts to restrict access to technology, particularly in areas such as advanced semiconductor production, can be seen as part of a strategy aimed at safeguarding China’s national security and economic independence. China believes that technological advancements in the semiconductor industry support national security and economic development, thus it focuses on enhancing its domestic capabilities to reduce reliance on foreign sources. This leads to heavy investment by China in strengthening its own semiconductor industry and limiting access to foreign technology.
An important technology company of The Netherlands like ASML complicating technology transfer to China by restricting the export licenses can be the reflection of the efforts of the company to balance the global technological goals and trade policy. This step may reflect both The Netherlands’ willingness to protect industrial and technological leadership and the effort to maintain balance in international trade and relationships. The Netherlands Prime Minister Rutte’s statements highlight the efforts towards the country’s technology restrictions will not affect overall economic relations and will not disrupt supply chains. These kinds of statements show that The Netherlands tries to protect its national interests by managing technological restrictions carefully. The statements of Chinese leader Xi Jinping seem to be reflections of the efforts to resist against external interventions and defenses to technological progress.
As emphasized by Xi, China’s scientific and technological development holds critical importance for national security and economic prosperity, and China actively takes a defensive stance against external interventions in these areas.
In conclusion, the significance of the Russia-Ukraine crisis for China-Netherlands relations is noteworthy. It is reported that Dutch Prime Minister Rutte conveyed concerns to Chinese leaders about the potential threat to Europe’s overall security if Russia succeeds in Ukraine and urged China to exert more pressure on Russia. This can be seen as an important point reflecting the complex dynamics in international relations and efforts by countries to balance their interests.
[1] “Chinese Leader Xi Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Associated Press News, https://apnews.com/article/china-netherlands-mark-rutte-dutch-asml-nato-a173a05114c9f13c23306e2ea393943b, (Date of Access: 28.03.2024).
[2] “China’s Xi Jinping Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Fox News, https://www.foxnews.com/world/chinas-xi-jinping-tells-dutch-pm-restricting-technology-access-wont-stop-chinas-advance, (Date of Access: 28.03.2024).
[3] “Chinese Leader Xi Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Associated Press News, https://apnews.com/article/china-netherlands-mark-rutte-dutch-asml-nato-a173a05114c9f13c23306e2ea393943b, (Date of Access: 28.03.2024).
[4] “China’s Xi Jinping Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Fox News, a.g.e., (Date of Access: 28.03.2024).
[5] “Chinese Leader Xi Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Associated Press News, a.g.e., (Date of Access: 28.03.2024).
[6] “China’s Xi Jinping Tells Dutch PM that Restricting Technology Access Won’t Stop China’s Advance”, Fox News, a.g.e., (Date of Access: 28.03.2024).
