The Dutch Company that Plays a Crucial Role in China’s Tech Industry
World

Beijing Welcomes Dutch Prime Minister Mark Rutte: The Significance of ASML’s Global Role in Semiconductor Industry

Beijing is a city of great importance to the Chinese government, and only the most important guests are granted meetings with President Xi Jinping. That’s why Dutch Prime Minister Mark Rutte’s visit to Beijing is significant in the eyes of China’s leadership.

Rutte’s significance in Beijing stems from China’s reliance on a Dutch company, ASML, in the global semiconductor industry. ASML is the only company capable of producing lithography systems on a large scale, which is essential for semiconductor chip production. This makes ASML a valuable technology group in Europe and their technology crucial for China’s technological supremacy.

The global semiconductor industry has become a battleground between the US and China, with Taiwan being a key player in chip production. China’s goal is to be self-sufficient in semiconductor production, reducing its dependence on Taiwan. In response, the US passed the Chips Act, imposing an embargo on advanced semiconductor chips to China. The Netherlands, as a US ally, quickly joined the embargo, impacting ASML’s business in China.

Xi Jinping criticized Rutte for the embargo, stating that it only leads to division and confrontation. He emphasized China’s right to technological progress and development despite external restrictions. While China accepts the embargo’s limitations, they seek to ensure that ASML can continue servicing machines in China.

Despite tensions over the semiconductor industry, China recognizes the significance of maintaining a relationship with the Netherlands and ASML. Xi’s criticism of Rutte’s decision was a way to assert China’s position but also acknowledges that cooperation is necessary in certain areas when it comes to global technology and trade.

In conclusion, Rutte’s visit to Beijing was significant due to his country’s crucial role in providing technology necessary for Chinese technological supremacy in global industries such as semiconductors. Despite tensions between countries like America and Asia regarding this industry, both parties recognize its importance for economic growth and technological advancement worldwide.

In summary, Xi Jinping met with Dutch Prime Minister Mark Rutte during his visit to Beijing because of their country’s reliance on Dutch company ASML for lithography systems needed for semiconductor chip production – which is vital for technological progress and development globally.

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