Holland is forced to give up support for its machines in China

A new day and a new episode of the US-China trade war soap opera with the Netherlands (ASML) in the middle, this time connected to support your machines. According to recent reports, the United States wants a Dutch company, a leader in chip machinery and equipment, to introduce new trade restrictions with China.

To be precise, Reuters reports that the US demanding ASML will stop servicing some equipment it has already sold to its Chinese customers. That is, in the event that the Chinese manufacturer has problems with their machine or breaks down, ASLM will leave them to their own devices. This means that without the right engineers, these machines end up turning into a giant paperweight.

As China’s ASLM machines wear out, they will be out of order without support.

The United States knows that ASML equipment cannot be replaced no other company. This equipment without proper maintenance, they will eventually go bad, which would be a serious challenge for the development of China’s domestic chip industry. These requirements are specifically aimed at making any advanced ASML machine in China no longer have maintenance or any support that helps the local chip business.

Now Holland and its government headed by Mark Rutte have a serious problem. ASML Holdings is the largest company in the Netherlands. This move will not only seriously affect your income, but also hinder this company can move its activities abroad. The Prime Minister, as you know, did not want to make a general decision. Despite public statements, national security interests and pressure from Joe Biden’s administration, they believe he will tighten restrictions on China in the future. That means reject service requests Chinese companies that will be out of business.

This opens the door for China talent hunt. This could help them build their own maintenance team for these expensive and important machines. Without support, spare parts or maintenance, China will slow its growth.

The general support of China and Russia does not help either.

This is exactly what Mark Rutte, who is the main favorite for the position of the next Secretary General of NATO, adheres to. First Minister met last week with the President of the People’s Republic of China, Xi Jinping, in Beijing. Apparently, there were conversations associated with ASML. After that, he said that China’s support for Russia is a serious problem at a time when the Netherlands is supplying Ukraine with F-16 fighter jets. The minister declined to say whether his government would deny licenses to ASML’s Chinese clients.

“It is very important for China to understand that any Russian victory (in Ukraine) will pose an immediate threat to both the Netherlands and Europe,” Mark said.

Already tomorrow, the head of the US export policy, Alan Esteves will review service contracts in a meeting with Dutch government officials and ASML executives. The Dutch government will then have to weigh its response amid concerns that American support for its security priorities will weaken. Especially if Donald Trump wins the presidential election in November.

“If the U.S. role in NATO diminishes, U.S. influence when it comes to transferring technology to China is likely to diminish as well.” said Frans-Paul van der Putten of the Klingendel Institute, a Dutch think tank. “China is the only country that can have any influence on Russia.”