The Dutch Company that Plays a Crucial Role in China’s Tech Industry

Dutch Prime Minister’s Visit to Beijing Highlights Complex Relationship between US, China in Semiconductor Industry

Beijing is home to a powerful leader, Chinese President Xi Jinping, who often delegates meetings with foreign leaders to his number two, Prime Minister Li Qiang. However, only the most important guests are granted meetings with Xi Jinping, making Dutch Prime Minister Mark Rutte’s visit to Beijing all the more significant.

The significance of Rutte’s visit stems from China’s reliance on a Dutch company, ASML, in the global semiconductor industry. ASML is the only company capable of producing lithography systems on a large scale, essential for semiconductor chip production. This makes ASML a valuable technology group in Europe and their technology crucial for China’s technological supremacy.

The global semiconductor industry has become a battleground between the US and China, with Taiwan being a key player in chip production. China aims to be self-sufficient in semiconductor production and reduce its dependence on Taiwan. In response, the US passed the Chips Act and imposed an embargo on advanced semiconductor chips to China. The Netherlands joined forces with the US as an ally and imposed similar restrictions on ASML’s business in China.

Xi Jinping criticized Rutte for imposing these restrictions, arguing that they only lead to division and confrontation. He emphasized China’s right to technological progress and development despite external restrictions. While China accepts these limitations, they remain committed to ensuring that ASML can continue servicing machines in China.

Despite tensions over the semiconductor industry, China recognizes the importance of maintaining a relationship with the Netherlands and ASML. Xi’s criticism of Rutte’s decision was a way to assert his country’s position while acknowledging the significance of cooperation in certain areas. In global technology and trade, strategic alliances and decisions have far-reaching implications for both parties involved.

In conclusion, Mark Rutte’s visit to Beijing holds great significance due to his country’s reliance on ASML in global semiconductor production industry which is crucial for China’s technological supremacy as well as strategic alliances and decisions have far-reaching implications for both parties involved even though tensions exist between them over this issue.

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