Chip, Japan and the Netherlands are also warring with China
A new deal with Japan and the Netherlands is expected to broaden the scope of US-imposed technology restrictions on China on microchips. The New York Times article
The Netherlands and Japan, both makers of some of the world's most advanced semiconductor manufacturing equipment, agreed on Friday to join the United States in blocking some shipments of their high-tech machinery to China.
The agreement, which followed high-level meetings with US national security officials in Washington, will help broaden the scope of broad restrictions unilaterally imposed by the Biden administration in October on the types of semiconductor technology that can be shared with the China.
WHAT WE KNOW ABOUT THE AGREEMENT
Countries have not publicly announced the deal, due to its sensitivity, and the details remain unclear. But the pact is likely to put the two countries' tech industries on a more even footing, preventing Japanese and Dutch firms from rushing to reclaim market shares in China that have been abandoned by US firms. American companies have said that this option would put them at a disadvantage.
The White House and the Dutch government declined to comment. The Japanese government did not immediately respond to a request for comment.
THE MOVE OF THE UNITED STATES
In October, the United States imposed tight controls on the sale of both semiconductors and the machinery used to make them to China, arguing that Beijing could use the technology for military purposes, such as breaking American codes or guiding hypersonic missiles. But well before these restrictions, the United States had been lobbying the Netherlands and Japan to further limit the advanced technology they export to China.
The October rules also restricted some shipments to China from countries outside the United States. Using a new regulation, called the "foreign direct product rule," the Biden administration has barred companies that use American technology, software or inputs from selling some advanced semiconductors to China. But these measures only applied to the chips, not the machinery used to make them.
Instead, the White House continued to pressure allies to pass restrictions limiting the sales of semiconductor manufacturing equipment by companies such as the Dutch ASML or the Japanese Tokyo Electron. The White House has argued that selling these advanced machinery to China creates the danger that Beijing could one day make its own versions of the advanced products it can no longer buy from the United States.
THE FEARS OF JAPAN AND THE NETHERLANDS
The negotiations, which are likely to continue, have had to overcome commercial and logistical concerns. Like the Americans, the Dutch and Japanese feared that if they withdrew from the Chinese market, foreign competitors would take their place, said Emily Benson, a senior fellow at the Center for Strategic and International Relations, a Washington think tank. Over time, this "could impact their ability to maintain a technological edge over competitors," he said.
The Dutch government has already banned the sale of its most advanced semiconductor machinery, the so-called extreme ultraviolet lithography systems, to China. But the United States has encouraged the Dutch to also limit a slightly less advanced system, called deep ultraviolet lithography. The deal reached on Friday includes at least some restrictions on this equipment.
Governments have also questioned whether they have the legal authority to impose restrictions like the United States, as well as having had extensive technical discussions about which technologies to restrict. Japan and the Netherlands will likely need some time to make changes to their laws and regulations to introduce new restrictions, Benson added, and it could take months or years for restrictions in the three countries to reflect the with each other.
(Excerpt from the press release of eprcommunication)
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/giappone-paesi-bassi-restrizioni-microchip-cina/ on Sat, 04 Feb 2023 06:41:55 +0000.