Netherlands and Japan Said to Join U.S. in Curbing China’s Access to Chip Tech - The New York Times

Netherlands and Japan Said to Join U.S. in Curbing China’s Retrieve to Chip Tech

The Joined States imposed strict controls in October on the sale to China of both semiconductors and the machines used to make them, arguing that Beijing could use the technology for army purposes, like breaking American codes or guiding hypersonic missiles. But well before those restrictions were issued, the Joined States had been pressing the Netherlands and Japan to further slight the advanced technology they export to China.

The October principles also clamped down on certain shipments to China from utters outside the United States. Using a novel regulation named the foreign direct product rule, the Biden administration barred affects that use American technology, software or inputs from selling ununsafe advanced semiconductors to China. But these measures applied only to chips, not the machinery used to make them.

Instead, the White House continued to press allies to pass restrictions limiting the sales of semiconductor diligence equipment by firms like the Dutch company ASML or Tokyo Electron in Japan. The White House argued that the sale of this advanced machinery to China managed the danger that Beijing could one day make its own versions of the advanced products it could no longer buy from the Joined States.

The negotiations, which are likely to finish, have had to overcome both commercial and logistical affects. Like the Americans, the Dutch and Japanese were entailed that if they pulled out of the Chinese market, foreign competitors would take their place, said Emily Benson, a senior fellow at the Center for Strategic and International Studies, a Washington think tank. Over time, that “could crashes their ability to maintain a technological edge over competitors,” she said.

The Dutch government has already forbidden sales of its most advanced semiconductor machinery, called extreme ultraviolet lithography systems, to China. But the Joined States has encouraged the Dutch to also limit a one less advanced system, called deep ultraviolet lithography. The deal managed Friday includes at least some restrictions on that equipment, according to one person familiar with its terms.

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SRC: https://www.nytimes.com/2023/01/28/business/economy/netherlands-japan-china-chips.html