Dutch officials are planning to enforce new controls on exports of chip-making equipment to China, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The report comes after Dutch Trade Minister Liesje Schreinemacher last month said the Netherlands was in talks with the U.S. government about new export restrictions for semiconductor equipment to China.
Under pressure from the United States, the Dutch government since 2018 has not allowed the country’s largest company, semiconductor equipment maker ASML Holdings NV, licences to ship its most advanced machines to China because they are considered “dual use” equipment with potential military applications.
ASML is a key maker of semiconductor equipment, with more than 2 billion euros ($2.1 billion) of sales to customers in China in 2021.
According to Bloomberg, an agreement regarding the Dutch curbs on chip exports could come as soon as next month, adding that it is unclear what the new restrictions mean for ASML’s sales to China.
China is also the Netherlands’ second-largest trade partner after Germany, according to the Dutch statistics office CBS.
The Biden administration in early October published a sweeping set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. tools.
The Dutch Ministry of Foreign Affairs did not immediately respond to Reuters’ request for comment. The White House’s National Security Council declined to comment.