The US government has tightened its export restrictions on semiconductor technology to China, particularly in the areas of quantum computing and advanced semiconductor manufacturing equipment. The Netherlands has also followed suit, imposing stricter approvals on the export of photolithography machines. China has expressed opposition to these measures, arguing that they violate market economy principles and disrupt global supply chains. Despite these restrictions, China's investment in chip manufacturing equipment has not decreased but rather increased, with expenditures reaching US$25 billion in the first half of the year, indicating that China is accelerating the localization of its chip industry.

US Export Restrictions: The US Bureau of Industry and Security (BIS) has updated its control policies, restricting the export of technologies such as quantum computing and semiconductor manufacturing, with the new regulations taking effect from September 6, 2024.Dutch Photolithography Machine Export Restrictions: The Dutch government has issued new requirements for export licenses for photolithography machines to comply with US export control policies. ASML has stated that it does not expect these measures to have a significant impact on its performance.

China's Foreign Ministry Response: China opposes the politicization of economic, trade, and technological issues by the United States, arguing that it violates market economy principles and disrupts global supply chains. China's Ministry of Commerce Position: China expresses dissatisfaction with the Netherlands' expansion of controls on photolithography machines and calls on the Dutch side to respect market principles and avoid hindering cooperation between the two countries in the semiconductor industry.

Investment in China's Chip Industry: Despite facing export restrictions, China's spending on chip manufacturing tools reached US$25 billion in the first half of the year, surpassing the combined total of the United States, South Korea, and Taiwan. This demonstrates that China is accelerating its localization process in the chip industry.

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