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  • China has expressed dissatisfaction with the Dutch government's decision to expand export controls on ASML chipmaking equipment.
  • The Dutch decision aligns with export restrictions imposed by the United States, which has been pressuring allies to join export controls targeting Chinese access to advanced chips.
  • The Chinese commerce ministry has urged the Dutch not to abuse export controls and to avoid measures that could damage Sino-Dutch cooperation in semiconductors.

In a recent development that has stirred the international trade waters, China has expressed its dissatisfaction with the Dutch government's decision to expand export controls on ASML chipmaking equipment. The Chinese commerce ministry voiced its discontent in a statement released on Sunday, marking a new chapter in the ongoing global semiconductor trade saga.

The Dutch government, on Friday, announced its decision to expand export licensing requirements for ASML's 1970i and 1980i DUV (Deep Ultraviolet) immersion lithography tools. This move aligns the Dutch rules with export restrictions on these machines, which were unilaterally imposed by the United States last year.

The decision, according to Dutch Trade Minister Reinette Klever, was made for our safety. The United States has been at the forefront of pressuring allies like the Netherlands and Japan to join export controls targeting Chinese access to cutting-edge chips and chipmaking equipment. This strategy has been a point of contention for Beijing, which has repeatedly criticized Washington's approach.

China's Stance on Coercive Diplomacy

The Chinese commerce ministry, in response to the Dutch government's announcement, stated, In recent years, in order to maintain its global hegemony, the United States has continued to coerce certain countries to tighten export control measures for semiconductors and (related) equipment. China is resolutely opposed to this. The ministry further urged the Dutch side not to abuse export controls and to avoid measures that could potentially damage Sino-Dutch cooperation in semiconductors. It emphasized the need to safeguard the common interests of Chinese and Dutch enterprises.

The impact of U.S. lobbying in this sector has been significant. It has effectively stopped ASML, the world's biggest vendor of chipmaking equipment, from exporting its most advanced lithography systems to China. This move has undoubtedly affected the global supply chain and has disrupted the balance of power in the semiconductor industry.

Historical Context of Coercive Diplomacy

This recent development is reminiscent of the U.S.'s reported plan to tighten export controls on chips targeting China, which was expected to disrupt the global supply chain. The U.S.'s coercive diplomacy has been a subject of international debate, with critics arguing that it harms the development of all countries, regional stability, and world peace.

The concept of coercive diplomacy was first put forward by Alexander George, a professor at Stanford University, in 1971. It was used to summarize the policies of the United States on Laos, Cuba, and Vietnam. The concept involves the use of threat or limited force to coerce an adversary to stop or reverse its action. Over the past half-century, the U.S. has continued to engage in coercive diplomacy, from economic sanctions to technical blockades, and from political isolation to threats of force.

Developing countries have been the worst-hit areas of America's coercive diplomacy. The United States imposed an economic, commercial, and financial embargo against Cuba in 1962, which continues to this day. The U.S. sanctions and blockade on Cuba cover almost everything from fuel, food, and daily necessities to medicine, leaving the island facing a chronic and severe shortage of supplies.