Reuters news agency commented that one of the top policy goals of ChinesePresident Xi Jinping is to build a domestic semiconductor manufacturing industry, spending billions of dollars to subsidize it. Meanwhile, the US government wants to slow this progress and seek help from allies such as the Netherlands and Japan.

Chinese President Xi Jinping (right) receives Dutch Prime Minister Mark Rutte in Beijing on March 27. (Photo: Xinhua)

According to Xinhua News Agency , Mr. Xi Jinping affirmed that "The Chinese people also have the legitimate right to development and no force can stop the speed of China's scientific and technological progress " during a meeting with the Dutch Prime Minister.

In addition, Mr. Xi also emphasized that China will "continue to pursue a win-win approach."

The Netherlands recently blocked the export of advanced chip technology to China over concerns that it could be used for military purposes. Chips are vital components, found in everything from smartphones to cars.

Dutch chip giant ASML has been banned from exporting its cutting-edge extreme ultraviolet (EUV) lithography machines to China. ASML is the only company in the world capable of producing the machines, so far. None of ASML’s EUV machines have been exported to the mainland. Such EUV machines are essential for making the smallest and most delicate chips.

In January, the Netherlands also banned ASML from selling some deep ultraviolet (DUV) printers to China. DUV machines are used to make less advanced chips.

The export restrictions have had only a modest impact on ASML’s financial position so far, but in the long term, Chinese chipmakers could replace ASML equipment with domestic brands SMEE or Japanese brands like Nikon and Canon.

According to Xinhua , in the meeting on March 27, Mr. Xi said: "Creating scientific and technological barriers and cutting off supply and industrial chains will only lead to division and confrontation." He added, cooperation is the only way.

The Chinese president also said that the country is ready to dialogue with the Netherlands and called for “providing a transparent and fair business environment for Chinese enterprises”.

Prime Minister Mark Rutte said the Netherlands tries to ensure that export restrictions are never aimed at a specific country, Reuters reported.

(According to CNBC, Reuters)