Coercive intent of 'chip alliance' laid bare

About three weeks after talks with the United States on new measures to restrict exports of semiconductor equipment to China, Dutch Prime Minister Dick Schoof told the media on Friday his government will "watch out very specifically for the economic interests of ASML" when deciding whether to further tighten the rules governing exports to China.

ASML's economic interests "are extremely important" and "need to be weighed against other risks", Schoof said. "ASML is for the Netherlands an extremely important, innovative industry that should not suffer under any circumstances, because that would damage ASML's global position." His remarks came one day after Bloomberg News reported that the Netherlands would impose more curbs on ASML's China chip business. Schoof expressed a balanced stance similar to that adopted by the previous Dutch government under Mark Rutte after the Joe Biden administration started trying to press the Netherlands to join its united front against China in its "chip war" about two years ago.

Just like Japan and the Republic of Korea, the other two major chipmaking equipment suppliers, the Netherlands also held a wait-and-see attitude when the US first unveiled its initiative to erect a "chip iron curtain" against China, although they were well aware of the long-arm jurisdiction nature of the politically motivated trade restriction measures. Yet, they soon realized that the US would not compensate them for any losses that would be incurred by their support for it, except a pat-on-the-back comfort, after the US made public its "chip war" plan. And none of the "friendly shores" the US has been fostering for its allies have shown the potential to replace China in manufacturing, trade and investment in the near future.