The Dutch company critical to China’s tech industry

Beijing, China – Chinese President Xi Jinping is known for holding a significant amount of power and often delegates meetings with heads of government to his number two, Prime Minister Li Qiang. However, high-profile guests such as Dutch Prime Minister Mark Rutte are granted personal meetings with both Li Qiang and Xi Jinping.

During his visit to Beijing, Rutte is considered an important guest by the Chinese leadership due to his potential appointment as NATO Secretary General after his current term. Despite the Netherlands typically playing a lower-key role as a trading partner with China, Rutte’s visit holds significance due to China’s dependency on a Dutch company, ASML, in the global technological race.

ASML is the only producer of lithography systems used in semiconductor chip production, making it a valuable technology group in Europe. The US has imposed restrictions on ASML’s export to China due to its alliance with the US. This restriction has made it challenging for China to maintain repair services for ASML machines already in China.

Xi Jinping and Li Qiang have been negotiating with the Dutch government to maintain these repair services. Despite facing challenges in circumventing the embargo, China wants to ensure continued technological development. Xi criticized Rutte’s decision to join the embargo, emphasizing China’s right to progress technologically and hinting at the country’s determination to advance despite limitations.

Rutte’s visit holds strategic importance for both China and the Netherlands as tensions escalate between global powers over technological supremacy. The outcome of discussions between the leaders could impact global semiconductor industry dynamics and geopolitical relations.

In conclusion, Rutte’s visit holds significant importance for both China and the Netherlands as they navigate tensions over technology supremacy in their respective industries. The outcome of their discussions could have far-reaching implications for global trade relations and geopolitical stability in East Asia.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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