Not only is Washington said to want to prevent the servicing of tools, but it is also looking to extend the list of companies that are blacklisted from receiving equipment from ASML.
In response, the US has been accused by Beijing of ‘overstretching’ the concept of national security in its efforts to prevent the export of ‘sensitive’ equipment and technology, and of coercing countries into what is being described as a ‘technological blockade’.
Over the past three years, US technological restrictions on China have been expanded. It’s no longer solely focused on high-end technology but appears to encompass all technologies that it deems to be “related to national security,” including products and virtual services.
The US has also sought to expand its technological restrictions on China by including other countries with both the Netherlands, and Japan agreeing to restrict China’s access to materials and equipment used to make advanced computer chips.
Not only is the US using stricter export controls but is also deploying a broad range of measures from investment restrictions and financial sanctions to high tariffs and operating license bans to limit access to technology.
While it looks like the US wants to tighten the screw further and prevent China from having the ability to produce cutting-edge semiconductors its existing sanctions don’t seem to be having the desired effect. Huawei, which unveiled a new smartphone last year – the Huawei Mate 60 Pro – powered by a very sophisticated chip, suggests that it was able to circumvent existing restrictions and was able to undermine US attempts to limit its capacity to produce advanced chips.
Last year also saw a financial resurgence by Huawei which saw its fastest growth in four years as demand for its consumer products and smart car components boomed – again, suggesting that it’s been able to overcome restrictions put on it by the US.
"We've been through a lot over the past few years. But through one challenge after another, we've managed to grow,” said the company and that statement seems to be true of the wider Chinese tech sector.
Chinese companies have certainly demonstrated a surprising degree of adaptability and innovation and there are doubts as to the effectiveness of the restrictions that have been imposed by the US, hence its decision to engage in talks with ASML. Any restrictions on servicing ASML machines could prove effective and painful given that the large and expensive tools require constant maintenance.
Whatever the outcome of discussions between the US and ASML the need for security is likely to trump the benefits of global technological cooperation.
