China and the Netherlands File photo: VCG

Dismissing the US' stepped-up pressure on the Netherlands over chip export controls, China and the European country on Monday pledged to deepen bilateral cooperation in economic issues and trade. Experts said it sends a strong signal that the two sides hope to continue the stable development of their economic relationship amid a volatile international environment.

Chinese Foreign Minister Qin Gang made a phone call with Dutch Deputy Prime Minister and Foreign Minister Wopke Hoekstra on Monday, during which Qin said that China looks forward to working with the Netherlands to implement the important consensus reached by the leaders of the two countries, strengthen exchanges at all levels and push for new progress in bilateral relations, read a statement on the website of China's Ministry of Foreign Affairs.

China stands ready to work with the Netherlands to maintain the stability of the international industry and supply chains, and to promote an open and orderly international trade environment over a fragmented and chaotic one, said Qin.

Hoekstra said that the Netherlands stands ready to strengthen engagement with China at all levels, deepen bilateral cooperation in such areas as economic issues, trade and climate change, and push forward their open and practical comprehensive cooperative partnership, adding that the Dutch side will continue to handle economic and trade affairs with China in a responsible manner.

"Given the timing of the conversation, it sends a signal that the two sides will continue to promote the steady development of bilateral relations, and China hopes the Netherlands won't be influenced by external factors," Cui Hongjian, director of the Department of European Studies at the China Institute of International Studies, told the Global Times on Tuesday.

The Netherlands showed constant resistance to US' pressure over chip export controls on China, but recent media reports said that the US had reached an agreement with the Netherlands and Japan to restrict exports of some advanced chipmaking machinery to China.

Experts called on the Netherlands to take moves out of consideration for the interests of its businesses and people, and carry out practical cooperation with China to jointly maintain the stability of global industry and supply chains.

"China has been one of the most important trade partners of the Netherlands for a long time, and it relies on market principles as well as WTO rules to conduct trade with China. Thus, the Netherlands risks violating these principles if it follows the US in preventing chip exports to China, and accordingly its international reputation would be affected," Cui said.

Since China and the US are both important markets for the Netherlands, it's crucial for the Netherlands, its businesses and people to continue normal trade with both sides, according to Cui.

China-Netherlands trade reached $130.25 billion in 2022, up 12 percent year-on-year, according to data from China's General Administration of Customs.
China's Foreign Ministry spokesperson Mao Ning blasted the US, saying it was damaging its allies' interests for its own benefits by maliciously blocking and containing Chinese enterprises. 

The US purposely boosts industrial transfers and decoupling, and its bullying practices have caused serious harm to market rules and the international trade order, which harms the legitimate rights and interests of Chinese firms and deals a blow to global industry and supply chain stability, she said.

"We hope that the parties concerned maintain an objective and fair stance, and independently make decisions in light of their own long-term interests and fair market principles," Mao said.

China is one of the world's most vibrant markets, with many segments such as 5G networks, smartphone sales as well as mobile internet accounting for about 50 percent of the market share worldwide. As a result, many foreign firms in the chip sector couldn't afford to lose the massive Chinese market, Fu Liang, an independent tech analyst, told the Global Times on Tuesday.

"The impact would be destructive for some foreign chip firms," Fu said. He said China is accelerating the domestic replacement of core components and its technological capability is also improving quickly.

Thus, it may become a powerful competitor to other economies in terms of semiconductors in several years.

The Netherlands' leading lithography firm ASML said in a statement sent to the Global Times that its business activities globally will continue.

"What we need now is stability and reliability in our industry to avoid further disturbances in the global semiconductor industry," the company said.