This is an editorial from China Daily.
The Chinese semiconductor industry was dealt another heavy blow on Friday as key equipment supplier ASML announced impending new restrictions on the exports of some of its products. Under the latest regulations of the Dutch government, exports of the company's second-most advanced product line, extreme ultraviolet semiconductor equipment, which wasn't covered by previous export control measures, will also be subject to licensing requirement.
Although the Dutch government said such controls are "country neutral", everyone knows they are anything but. On the contrary, they are part of the United States-led campaign to slow down, if not stop, Chinese progress in advanced chips manufacturing.
After putting in place its own export controls on sensitive technologies and equipment, which it argues may help Beijing boost its military capabilities and suppress human rights, Washington has tried everything possible to drag its allies onboard. It has successfully persuaded Japan to place 23 types of semiconductor manufacturing equipment under export control. It is negotiating hard with Seoul to limit Chinese access to corresponding resources.
Subjecting ASML, currently the world's sole manufacturer of lithography machines for making advanced semiconductor chips, to stricter export control may not immediately put all Chinese chipmakers out of business. They may still make do with lower-end ASML equipment available to make less sophisticated chips. But it will considerably slow down the country's progress in one of the most rapidly developing technological sectors, and widen the generational gaps between Chinese and Western industries.
Beijing has every reason to condemn and oppose such politicization of trade, which it has correctly pointed out is against almost all rules and principles of free trade in favor of US tech hegemony. But Washington is determined to do whatever it takes to win in what it deems as a decisive strategic "competition" with China and a geopolitical game it can't afford to lose. It is taking advantage of every resource available to lure, or coerce, allies and partners into the game.
The fresh restrictions on ASML products only represent one more step down that road. There have already been reports that Washington may release new rules seeking to further tighten its control on chip-making equipment. The US' attempts to suppress Chinese semiconductor sectors may not see instant results or put a number of Chinese chipmakers on life support. But their long-term impacts should not be underestimated.
On the one hand, the trade blockade will inspire greater Chinese endeavors and hence greater achievements in this critical technological sector. On the other hand, they themselves are cutting themselves off from the Chinese market. Moreover, Washington's approach is a prescription for division and confrontation that endangers global peace and unity.