“The Chinese people have the right to development, and no force can stop China’s scientific and technological progress,” Xi Jinping told outgoing Prime Minister Mark Rutte on Wednesday during their meeting in the Great Hall of the People in Beijing. “Artificially creating technological barriers and cutting off supply chains only creates division and confrontation,” Chinese state broadcaster CCTV quoted the Chinese leader as saying.
Although CCTV does not mention the chip machine manufacturer by name, Xi was undoubtedly referring to the restrictions surrounding ASML, which is the only one in the world that makes the equipment that produces the most advanced semiconductors. These may not be sold to Chinese customers due to export restrictions.
The United States wants to prevent China from catching up technologically in the field of semiconductors with the help of ASML’s machines and also wants ASML to be prohibited from maintaining equipment previously sold to China. The machines, which cost tens of millions each, quickly become unusable without continuous highly specialized maintenance.
Investment climate
After his meeting with Xi, Rutte did not want to discuss the possible limitation of maintenance of ASML equipment at Chinese customers. He did say that the Netherlands is “doing what it can” to protect supply chains. Export restrictions are not specifically aimed at China, but “at our own security.”
Rutte, who is accompanied in China by Minister Geoffrey van Leeuwen (VVD, Foreign Trade), said prior to the meeting that he saw many opportunities to expand trade between the two countries, for example in the areas of the green transition and elderly care. Xi also said he would strive for more cooperation on these themes.
The Prime Minister, who met Dutch entrepreneurs in China on Tuesday, drew attention to the investment climate for Dutch companies. They struggle with rapidly changing and often unpredictable regulations. Rutte also addressed the unequal competition with subsidized Chinese companies and the inadequate protection of intellectual property.
Influence on Russia
But for Rutte, another topic of discussion on Wednesday was “absolutely number one”: he told Xi that Russia should not win the war against Ukraine. China has taken a neutral position in that war and has so far refused to condemn the Russian invasion of Ukraine. Economically, the country is benefiting greatly from the American and European sanctions against Russia: Chinese companies have replaced Western companies that have left since the invasion. It also buys a lot of gas and oil from Russia at significant discounts.
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China cannot convince Europe of its neutrality
After his meeting, Rutte told journalists that he has asked China to avoid circumventing sanctions and not to supply goods to Russia that it can also use for its war effort. He also asked Xi to use his influence on Russia. “I explained that this is not just a conflict. That the Netherlands, as a good friend of China, is directly threatened, and that Europe is directly threatened by this war. It is really important that China also recognizes that perspective.”
The outgoing Prime Minister received many questions about his candidacy as Secretary General of NATO. He had not traveled to Beijing in that capacity, Rutte emphasized, but during a conversation with students earlier in the day he did say that if he gets the job, he wants to strengthen ties with Asia, “to keep the world stable.” .
Cyber attacks
When asked, Rutte said that he had also raised “difficult topics” in the conversation with Xi. “We talked about Uyghurs, Hong Kong, but also about cyber attacks.” In February, the Military Intelligence and Security Service (MIVD) announced the discovery of a Chinese cyber espionage campaign in a computer network of the Dutch armed forces.
And earlier this week, U.S. and British authorities revealed details of years of large-scale cyber operations by a Chinese government-affiliated hacking group. It attempted, sometimes successfully, to break into the e-mail of administrators and politicians, journalists and activists, especially critics of the Chinese government. According to the American justice department, among them were “all EU members” of a network of parliamentarians concerned with China policy, including Tom van der Lee (Member of Parliament for GroenLinks-PvdA) and Sjoerd Sjoerdsma (former Member of Parliament for D66). The hackers are also said to be responsible for the theft of personal data of forty million voters in the United Kingdom, after a digital burglary at the British electoral council.
At his daily press conference, a spokesperson for the Chinese Foreign Ministry rejected those accusations on Tuesday. China urges the US and UK to “stop politicizing cybersecurity, slandering China and imposing unilateral sanctions, and to stop their own cyber attacks against China.”
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