Dutch Trade Minister to Visit China Amid ASML Export Curbs and Nexperia Dispute
The Netherlands’ trade chief and his
delegation will come at a pivotal diplomatic moment, as The Hague faces
pressure from US tech-export laws
·
Dutch Trade Minister Sjoerd Sjoerdsma will lead a
business delegation to China in early July, marking the first China visit by a
minister from the new Dutch government sworn in on February 23.
·
The four-day visit is scheduled to begin on July 6
and will include stops in:
o
Beijing
o
Shanghai
·
In Beijing, Sjoerdsma is expected to meet:
o
Wang Wentao
·
In Shanghai, he is expected to meet:
o
Chen Jining
China
Previously Sanctioned Sjoerdsma
·
Beijing imposed sanctions on Sjoerdsma in 2021
after he criticized alleged human rights abuses in Xinjiang.
·
China has denied the allegations.
·
The sanctions on Sjoerdsma were reportedly lifted
recently, although Beijing has not formally announced the decision.
Semiconductor
Export Controls Central to Talks
·
The visit comes amid tensions involving:
o
Export restrictions on ASML chipmaking tools
o
Ownership disputes involving Nexperia
·
Both issues are linked to U.S.-led efforts to
tighten technology restrictions on China.
Concerns
Over the US Match Act
·
Analysts expect discussions to focus on the
proposed US Multilateral Alignment of Technology Controls in Hardware (Match)
Act.
·
The bill seeks to restrict allies’ exports of
advanced semiconductor equipment to China, including ASML’s deep-ultraviolet
(DUV) lithography machines.
·
Frans-Paul van der Putten said the legislation
could become a major issue in China-Netherlands relations.
·
He noted China could retaliate against Dutch firms
if they disrupt Chinese supply chains under foreign pressure.
Dutch
Opposition to Extraterritorial US Controls
·
Sjoerdsma recently stated that the Dutch government
opposes the extraterritorial nature of the proposed US restrictions.
·
He emphasized that each country should determine
its own export-control policies.
·
The Dutch government warned that broader
restrictions could:
o
Hurt semiconductor companies’ revenues
o
Weaken market competitiveness
o
Disrupt trade and investment stability
ASML
Warns Restrictions Could Backfire
·
Christophe Fouquet cautioned that further US
restrictions could accelerate China’s efforts to develop domestic semiconductor
equipment.
·
Fouquet noted that the DUV systems sold by ASML to
China are based on older technology introduced in 2015.
Nexperia-Wingtech
Ownership Dispute Escalates
·
The visit also takes place amid a continuing legal
conflict between:
o
Wingtech
Technology
o
Nexperia
·
Wingtech
announced it had filed a lawsuit against Nexperia and
three executives under China’s anti-foreign sanctions law.
·
The company is seeking:
o
Restoration of full control over Nexperia
o
Compensation of 8 billion yuan (about US$1.18
billion)
·
According to analysts, while both governments may
seek a diplomatic understanding, the dispute is now largely in the hands of the
companies and Dutch legal authorities.
A
Dutch minister who was previously sanctioned by Beijing will lead a business delegation
to China in early July, according to a source familiar with the planning, as the
two nations navigate thorny bilateral issues such as newly proposed US export curbs
on ASML chipmaking tools and the Nexperia ownership debacle.
Sjoerd
Sjoerdsma, who was recently removed from Beijing’s sanction list, will lead a four-day
visit starting on July 6 with stops in Beijing and Shanghai. In the capital, the
Netherlands’ trade minister is expected to meet with Minister of Commerce Wang Wentao,
followed by a meeting in Shanghai with the city’s Communist Party secretary, Chen
Jining, according to the source, who spoke on condition of anonymity.
Sjoerdsma
is poised to be the first minister from the new Dutch government, sworn in on February
23, to visit China. The specific members of his trade delegation were not immediately
clear.
China’s
Ministry of Foreign Affairs and Sjoerdsma’s office did not immediately respond to
requests for comment on Wednesday.
Beijing
sanctioned Sjoerdsma in 2021 following his criticism of alleged human rights abuses
in the Xinjiang Uygur autonomous region – charges that Beijing has long denied.
The restrictions on him were lifted in recent months, a source told the South China
Morning Post earlier, though no official announcement has been made.
The
visit comes as the two countries are navigating a fraught relationship over control
of semiconductor manufacturer Nexperia and export restrictions
on ASML’s lithography tools, both of which have been squeezed by Washington’s
efforts to tighten hi-tech curbs on China.
Frans-Paul
van der Putten, founder of Dutch consultancy ChinaGeopolitics,
said that an urgent topic of discussion between the two sides on the upcoming trip
was likely to be the Multilateral Alignment of Technology Controls in Hardware (Match)
Act.
The
bill, tabled in the US Congress in April, seeks to further restrict US allies’ ability
to sell advanced semiconductor equipment to China. This includes Dutch manufacturer
ASML’s deep-ultraviolet (DUV) immersion lithography machines.
“It
is unclear, though, what the Netherlands or China can do to prevent the Match Act
from being adopted and used against ASML by the US,” van der Putten said, noting
that China could retaliate against Dutch companies or individuals if they disrupt
Chinese supply chains under foreign pressure.
Sjoerdsma
recently expressed his opposition to the Match Act in written answers to Dutch lawmakers
published on May 12, noting that the Dutch government had raised objections with
US lawmakers and the administration.
“The
cabinet opposes the extraterritorial effect inherent in the American proposal. Every
country is responsible for its own export-control legislation,” Sjoerdsma said,
adding that sweeping restrictions risked hurting semiconductor companies’ revenues
and market standing while damaging trade and investment stability.
ASML
CEO Christophe Fouquet also warned recently that further US restrictions might backfire
by forcing China to accelerate its efforts to develop its own tools.
The
DUV machines that ASML sells to China are based on technology introduced in 2015,
which is eight generations of chip technology ago, Reuters quoted Fouquet as saying
last week.
Meanwhile,
the legal battle continues between China’s Wingtech
Technology and Dutch chipmaker Nexperia over the firm’s
control. While the two governments could try to reach an understanding on what outcomes
they find desirable or at least acceptable, the matter is now largely in the hands
of the two companies and the Dutch Enterprise Chamber, according to van der Putten.
At
the weekend, both sides exchanged fire over whether Nexperia
obstructed Wingtech’s audit work following Wingtech’s announcement on Friday that it had filed a
lawsuit against Nexperia and three of its executives under
China’s anti-foreign sanctions law, demanding the restoration of full control over
Nexperia and 8 billion yuan (US$1.18 billion) in compensation.