USA must take allies seriously

The Dutch economics minister warns that Europe should be careful not to become a pawn in the tech conflict between the USA and China. The USA should see this as an opportunity for its China strategy.

Dutch Economics Minister Dirk Beljaarts wants Europe to be taken more seriously when it comes to high technology. He told the Dutch newspaper “NRC” that “a coalition of the willing” is needed in the EU so that Europe does not become a plaything of the great powers USA and China. Beljaart’s statement is perfectly timed to coincide with the second anniversary of US export controls against China.

The USA has been taking tough action against China since October 2022. They want to freeze – or at least slow down – China’s technological progress with far-reaching export controls. They want to avoid American technology helping to build up the Chinese military. For the United States to achieve this goal, it must prevent China from producing cutting-edge computer chips. These enable technologies such as 5G or artificial intelligence, for example.

Computer chips are also the reason why the Dutch government can sometimes feel like a pawn of the major powers. The Dutch company ASML manufactures machines for the production of computer chips and has a monopoly on certain machines. It is therefore central to the US strategy and directly affected by export controls. Without ASML equipment, China’s technological progress stagnates.

The Dutch economics minister’s comments shine a spotlight on a little-noticed aspect of the tech conflict: how the US deals with its allies. Instead of defining a common strategy with them, the USA repeatedly presents its partners with a fait accompli. They already did that with Taiwan, Japan and the Netherlands.

The USA behaves presumptuously towards allies

For several years, the USA has banned ASML from supplying its most modern machines to China. Since 2023, older models have also been affected. In addition, ASML will no longer be allowed to maintain certain machines in China from the beginning of 2025. It would be the latest tightening of US measures, with ASML in focus.

The Biden administration repeatedly tightened regulations that directly affected ASML and then expected the Netherlands to adopt the measures almost automatically. The US’s imperative towards its allies could be formulated as follows: Either you tighten the measures, or we will tighten them for you.

The US’s actions are arrogant, stubborn and reckless. The anger of the Dutch government is all the more understandable. But so far the Netherlands has been powerless to meet the demands of the USA in Europe. Because their economic and military relations with the USA are simply too close for them to fall out with them.

The Dutch demand is understandable but unrealistic

The Dutch powerlessness is probably one of the reasons why Dutch Economics Minister Beljaarts is calling for a coalition of the willing that is committed to a more economically independent Europe. In addition to the Netherlands, he also included Germany, Poland, Belgium, Italy and France.

How unrealistic such a coalition opposing America is becomes clear just by looking at Germany. Germany is indirectly affected by the export bans against ASML because it is home to numerous of the company’s suppliers. If Europe were to actually demand a more collegial approach from the USA, Germany would definitely have to be there. But anyone who believes that Chancellor Olaf Scholz would openly criticize the Americans on this issue also believes that the traffic light coalition will last beyond the next federal election.

But even if a more decisive stance by the Europeans towards the USA is just Dutch wishful thinking: it is good and right that Beljaarts points out the imbalance in the relationship between the USA and its European partners. He also recently spoke out to US Commerce Secretary Gina Raimondo in favor of more cooperation. The USA would do well to take the warning words from Europe seriously.

After all, the USA is driving its allies ahead of itself in the tech conflict without any need. The Europeans, and with them the Dutch, view China more critically the longer it goes on. If the Americans acted more considerately toward their partners, unnecessary tensions could be avoided.

Both the USA and Europe could benefit from this. Only when the two continents agree on their actions against China can they act as one. The tough strategy towards China could then be pursued even more consistently.

By Editor

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