The Dutch government has announced new export restrictions on “certain advanced semiconductor manufacturing equipment” on grounds of national security, although it did not explicitly mention pressure from the US to curb chip sales to China.

The Chinese government responded by criticizing the decision, stating that it would impact chip production and supply chains. China’s foreign ministry spokesperson opposed the US’s “abuse of export controls” and its efforts to impose a technological blockade against China. The US is engaged in an arms race with China over control of the semiconductor supply, a crucial factor in becoming a superpower. The US had previously imposed export restrictions on chipmaking tools to China, and it requires key suppliers like the Netherlands to join forces for the restrictions to be effective.

ASML, the largest chip equipment maker in the world, will be particularly affected by the Dutch government’s decision, although the company does not anticipate a significant financial impact. The Dutch government emphasized the potential national security risks associated with the uncontrolled export of advanced chips, given their contribution to advanced military applications.