China Strikes Back: Retaliation Looms Over Semiconductor Supply Chain Exclusion

Chinese Ambassador to the Netherlands Suggests
“Dialogue Improvement with the Dutch Government Necessary to Avoid Deterioration of Situation”

China has hinted at retaliatory measures in response to U.S. actions to exclude the country from the advanced semiconductor supply chain.

According to Bloomberg on the 22nd (local time), Tan Jian, the Chinese Ambassador to the Netherlands, said in an interview with local media the day before, “If the U.S. deals with us with a hegemonic attitude, we will also appropriately respond,” adding, “However, our relationship with the European Union (EU) should not be affected.”

He criticized, “The U.S. is expanding the concept of security too broadly to issues unrelated to military risks,” and “Moreover, the U.S. is pressuring its allies to behave the same way.”

Furthermore, Ambassador Tan emphasized, “Chinese companies are finding it more difficult to do business within the EU due to increased control, political pressure, and false information,” and “To prevent the situation from worsening, dialogue with the Dutch government needs to be improved.”

This is interpreted as a remark considering the suspension of lithography equipment exports by the Dutch semiconductor equipment company ASML. Earlier this month, ASML canceled the shipment of some machines to China after the Dutch government partially withdrew its export license. This action was taken at the request of U.S. President Joe Biden, and the export ban was implemented a few weeks before it went into effect.