Creating technological barriers and disrupting industrial supply chains would only lead to confrontation, Chinese President Xi Jinping warned on Wednesday, as new Dutch policies on chip exports to China threatened to strain bilateral ties, reports "Reuters" .
"The disconnection and disconnection" led nowhere and cooperation was the only option, Xi told Dutch Prime Minister Mark Rutte during a meeting in Beijing, according to Chinese state media.
Earlier this year, the Dutch government began denying licenses to ASML, the largest supplier of lithography equipment to global computer chipmakers, to export advanced lines of "DUV" in China, yielding to the demands of the United States.
At the same time, the Netherlands is under pressure to protect its own economic interests, which include ASML. The country's largest company considers China its second largest market after Taiwan.
"Artificially creating technological barriers and disrupting industrial and supply chains will only lead to division and confrontation," Xi Rutte said.
"The Chinese people also have the legitimate right to development, and no force can stop China's scientific and technological development and progress."
Rutte's talks in Beijing were expected to focus on whether ASML would obtain Dutch government licenses to continue maintaining billions of euros worth of advanced equipment it has already sold to Chinese customers but now falls under export restrictions. when current licenses expire.
The export restrictions have so far had only a modest impact on the financial results of ASML, which dominates the global market for lithography systems - tools vital to helping create the electrical circuit of computer chips.
But in the longer term, if the Netherlands is seen as an unreliable business partner, Chinese chipmakers may try to replace their equipment with that of competitors such as Nikon and Canon.
Dutch Trade Minister Geoffrey van Leeuwen, who was also in Beijing as part of Rutte's delegation, told Dutch business daily FD on Tuesday that protecting ASML's interests was his "number one" priority.
His remarks reflect the diplomatic line the Dutch government must tread, with ASML now the focus of the "chip war" between the US and China.
China is ready to expand imports of "high quality" goods from the Netherlands, state media quoted Xi as saying to Rutte, without giving details.
More broadly, China is ready to continue developing an open and pragmatic cooperative partnership with the Netherlands, Xi said.