Netherlands Warns of China-Russia Trade Impact on European Security
The Netherlands’ Foreign Minister, Caspar Veldkamp, has raised concerns over the growing trade relationship between China and Russia, emphasizing its implications for European security.
Speaking ahead of a meeting with European Union foreign ministers in Brussels, Veldkamp highlighted NATO’s view of China as a “decisive enabler” of Russia in its ongoing war against Ukraine.
This perspective stems from reports that Chinese companies are supplying goods that ultimately end up as components in Russian military weapons, including drones. “I raised this twice with the Chinese Foreign Minister Wang Yi,” Veldkamp said. “As Europeans, we should all address this issue. China must realize that its actions are directly affecting European security.”
The Netherlands plays a crucial role in the global semiconductor supply chain as the home to ASML, the world’s leading supplier of advanced lithography tools used to create computer chips. These chips are essential for a wide range of technologies, from consumer electronics to military equipment.
In collaboration with the United States, the Dutch government has implemented increasingly strict export restrictions to prevent ASML from shipping its most advanced chip-making technology to Chinese manufacturers. These measures aim to limit China’s ability to produce cutting-edge chips that could potentially bolster its military capabilities.
Despite these restrictions, China remains ASML’s largest market, as Chinese companies focus on producing older-generation chips not covered by the export rules. These chips, while not state-of-the-art, are still adequate for many military applications.
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ASML reported record sales of €2.79 billion ($2.94 billion) to Chinese firms in the third quarter of 2023, although the company anticipates a decline in 2025 as the effects of export controls deepen.
Veldkamp noted that the intersection of technology and security is a critical issue for Europe, particularly as trade between China and Russia continues to thrive. He said discussions with his EU counterparts would focus on addressing foreign assistance to Russia, whether from China, Iran, or North Korea. “We are discussing any support that aids Russia in its war in Ukraine,” he stated.
NATO’s assessment underscores the complex role China plays in global geopolitics. While not directly involved in the Ukraine conflict, China’s indirect support for Russia, through trade and supply chains, raises significant concerns for European nations and their security.
ASML’s dominance in the semiconductor industry places the Netherlands at the center of international tech diplomacy. The company’s advanced lithography machines are crucial for manufacturing cutting-edge chips, and their restricted export reflects a strategic effort to maintain Western technological superiority.
However, balancing economic interests with security concerns is no easy task. While restrictions have slowed China’s access to advanced technology, they have not entirely curtailed its ambitions. Chinese chipmakers continue to expand their capacity to produce older chips, which can still be repurposed for military uses.
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Veldkamp’s remarks serve as a reminder of the interconnected nature of global trade and security. As the EU grapples with how to address the challenges posed by Chinese support for Russia, Veldkamp emphasized the importance of a united European approach. “This is an issue that all of Europe must confront collectively,” he said.
As geopolitical tensions persist, the interplay between technology, trade, and security will remain a defining challenge for Europe. The Netherlands, through its stewardship of ASML and its active diplomatic engagement, will continue to play a pivotal role in shaping the global response to these issues.
The outcome of these discussions among EU ministers may pave the way for tighter controls and more coordinated policies to address the dual threats of technological proliferation and geopolitical instability.