The US Convinces The Netherlands And Japan To Restrict Chip-Making Equipment Exports To China

The US succeeded in convincing its allies, the Netherlands and Japan, to restrict chip-making equipment to China. The joint effort is to slow down military development by denying access to advanced equipment and technologies. 

According to the information available from the best news websites, a meeting was held between national security officials of three countries in Washington on Friday, and an agreement has been reached on implementing export controls. It helps prevent the export of critical technologies to China and slows down its access to sophisticated technologies. The three nations that inked a pact on Friday to support this initiative have not divulged the details, citing fears of retaliation by China. 

Photolithography machine producer ASML Holding NV is barred from the sale of immersion lithography machines under the new pact agreed on Friday by the Netherlands. Machines are necessary for the manufacture of cutting-edge chips. According to the directions given at Friday’s meeting in the US, Japan will also impose similar restrictions on Nikon Corp.

The participants in the Friday meeting included the top national security advisor of Kishida, Takeo Akiba, Jake Sullivan, the national security advisor of the US, the undersecretary (commerce for industry and security, Alan Estevez, and Tarun Chhabra. 

Biden’s administration decides to implement export restrictions

In October, the Biden administration decided to implement restrictions on the export of advanced equipment and chip production equipment manufactured by companies in the US. Under this rule, the chip manufacturers in the US need to get clearance from the Commerce Department to ship the latest technologies, like chips, which find usage in supercomputing and AI calculations, to third countries. It prevents the usage of cutting-edge technologies in modern weapons.

Fumio Kishida, the Japanese prime minister, agreed, in a meeting with Biden on January 13, 2023, for security cooperation to restrict the military buildup by China. Mark Rutte, the Dutch Prime Minister, held a meeting with Biden during his visit to the White House on January 17, 2023. The US needs the support of both Japan and the Netherlands to halt the shipment of sensitive and advanced technologies from companies such as Tokyo Electron Ltd., Nikon, and ASML, which are based in these two nations, to China. 

A cautious approach towards China

The minister of economy, trade, and industry of Japan, ​​Yasutoshi Nishimura said on Friday that the nation is in discussions with the US about imposing further restrictions on exports. South Korea, Japan, and the EU are working with the US to counter the technological advancements of China. However, they are cautious in their approach because of their heavy reliance on China for business. 

According to the latest news today, Thierry Breton, the European Union’s market commissioner, stated during a speech in the United States on Friday that Europe always sides with the United States when implementing common securities. However, he cautioned against implementing restrictions, as they were only needed for ensuring security.

ASML’s US-based representative said the company is aware of the agreement and said it is too early to estimate the impact on its operations. A spokesperson for the manufacturer of lithography machines, Nikon, said the stricter controls agreed to in the Friday meeting would have an impact on its business. Nikon is conducting business with China as allowed and has not heard about stricter controls so far agreed upon in the meeting from the government.