The US is reportedly pressing the Netherlands-based ASML Holding NV and the Japan-based Nikon Corporation not to sell the technology to China. If successful, the move would significantly widen US sanctions on China that intend to prevent the country from becoming a major chip manufacturer.
“This is yet another example of the US’s practice of ‘coercive diplomacy’ by abusing state power and wielding technological hegemony. It is also classic technological terrorism,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters.
Zhao wouldn’t say if China planned to retaliate but added that the move “would only remind other countries of the risks of technological dependence on the US and prompt them to quickly become independent and self-reliant in science and technology.”
The US push to squeeze Chinese chip manufacturing comes amid a global chip shortage. Congress is looking to pass a massive China competition bill that would include $52 billion to subsidize domestic chip production, but the legislation has stalled over partisan differences.
The US has taken unprecedented economic measures against China in recent years, including a ban on the import of goods sourced from China’s Xinjiang region, which came into effect in June.