Xi Jinping’s Asserts China’s Technological Advancement

Chinese President Xi Jinping recently met with Dutch Prime Minister Mark Rutte, emphasizing China’s commitment to scientific and technological progress. Here’s a breakdown of their discussions and what it means for global tech dynamics:

Xi Jinping’s Remarks

• Xi Jinping stated that “no power can stop China’s scientific and technological development.”
• He warned against creating technological barriers and disrupting supply chains, emphasizing that such actions would only lead to division and conflict.

ASML’s Role in the Chip War

• ASML, a Dutch company, produces extreme ultraviolet lithography machines crucial for advanced semiconductor manufacturing.
• The Dutch government recently prevented ASML from exporting some of its machines to China, following US pressure and restrictions on semiconductor sales.

Chinese Response

• Chinese officials, including Minister of Commerce Wang Wentao, urged the Netherlands to facilitate the normal trade of lithography machines.
• Despite the Dutch ban, China remains a significant market for ASML, with a substantial portion of its revenue coming from Chinese sales.

ASML’s Sales to China

• In 2023, China accounted for a significant percentage of ASML’s revenue, indicating its reliance on ASML’s technology for chip manufacturing.
• China’s access to high-end chipmaking machines like those produced by ASML is crucial for its semiconductor industry.

Implications for Global Tech Dynamics

• China’s aggressive acquisition of semiconductor equipment aims to bolster its chip production capabilities, even in the face of US restrictions.
• This move has allowed Chinese companies like Huawei to develop advanced chips domestically, challenging previous expectations about China’s technological capabilities.

As China continues to invest heavily in semiconductor technology, the global tech landscape may witness significant shifts in power dynamics.