U.S. allies Japan and the Netherlands have agreed to limit exports of chip-manufacturing equipment to China, aligning with U.S. attempts to curb China’s military development, according to The Wall Street Journal (subscription).
The why: The U.S. is working to cut off China’s access to these advanced technologies to curb its military and surveillance growth. Support from U.S. allies is vital for the U.S. to achieve this goal, especially because Japan and the Netherlands are home to important manufacturing companies, such as ASML Holding NV and Nikon Corp.
The bigger picture: Due to the sensitive nature of this agreement and concerns about possible retaliation from the Chinese government, the agreement has not been formally announced. The Biden administration and Congress will remain focused on using export controls and other restrictions to achieve national security goals.
- “The agreement comes in the wake of Washington’s decision in October to impose significant export restrictions on advanced chips, equipment and computer commodities manufactured by U.S. companies.”
The NAM’s take: “Manufacturers support tailored export controls that protect U.S. national security,” said NAM Director of Trade Facilitation Policy Ali Aafedt.
- “Where possible, multilateral export controls are highly preferred to better achieve security goals. Manufacturers appreciate the administration’s efforts to work on these advanced technology controls on a multilateral basis, and we encourage continued work with U.S. allies and partners moving forward.”