A globally critical chip firm is driving a wedge between the U.S. and Netherlands over China tech policy

TL;DR

- The U.S. is worried that if ASML ships the machines to China, chipmakers in the country could begin to manufacture the most advanced semiconductors in the world, which have extensive military and advanced artificial intelligence applications.The U.S. is worried that if ASML ships the machines to China, chipmakers in the country could begin to manufacture the most advanced semiconductors in the world, which have extensive military and advanced artificial intelligence applications.Huawei, China's telecommunications powerhouse, faced export restrictions that starved it of the chips it required to make smartphones and other products, crippling its mobile business."Now that the U.S. government has put unilateral end-use controls on U.S. companies, these controls would be futile from their perspective if China could get these machines from ASML or Tokyo Electron (Japan)," Pranay Kotasthane, chairperson of the high-tech geopolitics program at the Takshashila Institution, told CNBC."Obviously we are weighing our own interests, our national security interest is of utmost importance, obviously we have economic interests as you may understand and the geopolitical factor always plays a role as well," Liesje Schreinemacher, minister for foreign trade and development cooperation of the Netherlands, said last week."

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