Germany follows the restrictions imposed by the US government, and is also considering the possibility of reducing the export of raw materials and equipment for the production of chips to China. Their plan is to hinder the country’s technological progress and further reduce the world’s dependence on the Chinese market. However, they also want to attract investment from technology giants in Europe.

The case is being studied in Berlin, which predicts a lot of commercial stress between the two countries if a decision is made to actually restrict supplies. Chinese Foreign Ministry spokesman Mao Ning has already condemned the act. “It would not be constructive for these countries to impose export controls on China in the name of reducing perceived dependency. Countries must work with us to protect the international economic and trade order.”

In the past, the analysis has already been given by the German Minister of Economics, Robert Habeck. He states that performances must always keep pace with the world stage. “Export controls on our technology need to be constantly reviewed, expanded and updated.” Perhaps the sanctions imposed on the Netherlands served as a parameter, but the information was not officially described.

Biden has already influenced Germany and the Netherlands

The US government, led by Joe Biden, has said several times that it wants to stop China’s advancement in the technology market, and has imposed several international sanctions to delay domestic production as much as possible. This deal involves Germany, the Netherlands and Japan, with restrictions on the Nikon and ASML factories that were banned from supplying the UV lithography machine, blocking TSMC’s entire process for a while.

With China in lockdown, several companies are rushing to build factories elsewhere to maintain their status in the market. Intel is already moving forward and asking for government subsidies to be able to refine designs and bring some of its production to Europe.

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Source: Reuters.

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