US Allies Begin to Tire of Trump's Actions, Speak Out Bluntly

The administration of Donald Trump has continued to impose restrictions on the export of advanced technology to China, a move that is now causing difficulties for other nations. These export controls do not only apply to technology exports from the United States to China but also impact US allies. One such ally is the Netherlands, home to the advanced chip-making equipment giant ASML. The Netherlands is reportedly lobbying the US not to expand export controls on chip equipment to China, as broader restrictions would hinder ASML from selling its equipment there. Dutch Minister for Foreign Trade and Development Cooperation, Sjoerd Sjoerdsma, met with US Commerce Secretary Howard Lutnick and members of parliament in Washington on Tuesday (23/6) local time. The meeting took place amid US Congressional debate over a bill called the MATCH Act, which would ban Chinese chip-making companies from accessing advanced chip-making equipment from the US and allied countries. “It is quite extraordinary that I come here to outline our concerns to Congress,” Sjoerdsma said in an interview with Bloomberg after the meeting. “We do so because the concerns are very significant and because the stakes for the Netherlands could be very high,” he added. The Dutch government is determined to protect ASML, a company based in Veldhoven, Netherlands, and the most valuable company in Europe. China is a crucial market for the firm, accounting for 19% of net system sales in the first quarter of this year, down from 36% in the previous quarter. One of the most significant proposed expansions in the US bill is a restriction on all of ASML’s DUV lithography machines. This step would complement existing controls on the most advanced EUV lithography machines, which have never been permitted for export to China. The Dutch government opposes the bill and criticises its extraterritorial nature, as the rules impose restrictions on the sovereign trade policies of other nations. “We want to prevent sensitive technology from falling into the hands of those who could endanger our security. However, this must be done voluntarily,” Sjoerdsma said. “And if it involves cross-border and transatlantic coercion, well, that is a decision we have to make as a country. So, we consider that very unfortunate,” he stated. ASML, which counts Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics Co among its customers, has in recent years been caught in the middle of US government regulations aimed at curbing China’s chip technology advances on national security grounds. Sjoerdsma said that Tuesday’s visit would be followed by a series of meetings in Washington, where the Dutch government will urge US officials to reconsider the MATCH Act.