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Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

author:Simon Beichen

"Why don't Western high-tech products dare to open up to China? The Netherlands sells 700,000 lithography machines for only 1,000 yuan"

In today's era of rapid development of science and technology, high-tech products are not only the embodiment of economic competitiveness, but also an important symbol of a country's comprehensive national strength. Western countries have long been leading in the field of high-tech, but with the continuous improvement of China's scientific and technological strength, they are troubled about whether to open up advanced technology products to China. On the one hand, opening up is conducive to promoting economic and trade cooperation and obtaining commercial benefits. On the other hand, it is also a top priority to prevent the outflow of sensitive technologies to protect our own scientific and technological advantages and safeguard national security. Western countries are caught in a dilemma on this issue, and how they weigh the pros and cons and seek a balance is worth in-depth discussion.

Western countries' concerns about China's high-tech exports

At present, Western countries have many concerns and misgivings about exporting high-tech products to China. The most prominent of these is the fear that these cutting-edge technologies will be misused for military purposes and threaten the security of Western countries.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

In the past few years, China has made great strides in a number of cutting-edge scientific and technological fields, which has made Western countries suspicious of China's "intentions". For example, artificial intelligence, semiconductors, quantum computing, etc., these technologies have great prospects in the civilian field, and they may also be used for military purposes such as developing advanced weapons and deciphering codes. Once these technologies fall into "illright" hands, they are likely to pose a threat to the national security of Western countries.

In addition, Western countries are also worried that if advanced technology is transferred to China, it may be "reverse engineered" by Chinese companies, so as to break through technological barriers in the short term, quickly catch up, and even eventually replace the West's technological superiority. This will undoubtedly weaken the competitiveness of Western countries in the global high-tech industry.

Such fears are not unfounded. China has successfully overtaken the West in some traditional fields of science and technology products through digestion and absorption. For example, from high-speed rail, nuclear power, etc., China has gradually mastered all intellectual property rights from the initial technical assistance, and has been at the forefront of the world in many aspects.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

Therefore, maintaining its leading edge in the field of emerging science and technology and ensuring national security are important reasons why Western countries have doubts about China's high-tech exports. Only by establishing a reasonable management and control mechanism and balancing development and security can we resolve concerns to the greatest extent and achieve mutual benefit and win-win results.

Western countries have imposed controls on the export of some technologies

In order to prevent the outflow of sensitive technology and maintain its leading position, Western countries have implemented strict controls on the export of some cutting-edge technology products to China.

In the United States, for example, the Trump administration imposed severe sanctions on Chinese high-tech companies such as Huawei. After Biden took office, although his tone was softened, the sanctions on Huawei and other companies have not been completely lifted. In addition, the United States has introduced regulations restricting Chinese purchases

Western countries have been wary of exporting high-tech products to China, stemming from concerns that China could misuse these cutting-edge technologies for military purposes and that China is using reverse engineering to undermine Western countries' technological superiority in high-tech fields. This concern has become more pronounced in recent years, as China's growing power in many high-tech fields has led to growing concerns about technology outflow from the West.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

In fact, some Western countries have already imposed controls on the export of some sensitive technologies to China. One of the most striking cases is the sale of a high-precision lithography machine worth 700,000 euros in the Netherlands to a Chinese company in 2022 for a symbolic price of only 1,000 euros. The low-priced sale has been widely questioned by the outside world, as it exposes serious loopholes in the Netherlands' control of high-tech exports to China, and gives Chinese companies "reach" convenience.

This incident has triggered extensive discussion and reflection on the high-tech export policies of Western countries to China. Those who support the opening up of exports believe that excessive restrictions on technology exports are not conducive to promoting economic and trade cooperation and will affect the commercial interests of Western companies in the Chinese market. On the other hand, the other side insists that sensitive technology must be prevented from flowing to China, so that it cannot be misused or acquired by China to form a technological strategic challenge to the West.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

In response to this dilemma, Western countries are trying to find a balance between promoting economic and trade cooperation and safeguarding national security. Their goal is to avoid undue restrictions that impact business interests, while at the same time preventing the outflow of sensitive technology in key areas and maintaining their technological advantage.

To achieve this goal, Western countries have taken and will continue to act on multiple levels

First, at the level of policies and regulations, some countries are revising and improving their regulations on the export of sensitive technologies, and conducting stricter scrutiny on exports involving national security and cutting-edge technologies. The United States, for example, passed the Export Control Reform Act in 2018 to bring many emerging technology areas into the scope of export controls.

Second, in terms of the review process, the export administration authorities are also strengthening the review of export applications, and conducting more rigorous assessment of export applications that may have national security risks. Some countries have also established "white list" and "black list" systems to impose stricter screening standards on potentially risky buyers.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

Third, at the level of international cooperation, Western countries are also strengthening information sharing and coordination among themselves to prevent loopholes in management and control from being exploited. They also called on other countries to join relevant export control measures to curb the spread of sensitive technologies to countries such as China.

However, even so, the implementation of existing export control measures still faces considerable challenges. On the one hand, high-tech products often have intricate sources and division of labor in the global industrial chain, and it is difficult to implement comprehensive control over each link; On the other hand, some small and medium-sized enterprises also have certain negligence in complying with export regulations, which creates opportunities for illegal exports.

Therefore, in addition to improving regulations and strengthening law enforcement, it is also important to improve the compliance awareness and ability of enterprises. A number of Western countries have launched compliance training programs for companies to help management and employees improve their understanding of and compliance with export control regulations. At the same time, strengthening the penalties for violations will also help to warn and punish those enterprises with illegal intentions.

Why do Western high-tech products dare not open up to China? The Netherlands sells 700,000 yuan to China for only 1,000 yuan

In general, on the issue of high-tech exports to China, Western countries face the difficult challenge of striking a balance between promoting economic and trade cooperation and maintaining technological superiority. They need to prevent technology outflow by regulating the export of sensitive technologies, while at the same time avoiding excessive restrictions that affect normal business activities. This requires Western countries to take comprehensive measures at multiple levels such as policies and regulations, review processes and international cooperation, and improve the awareness and ability of enterprises to comply with exports.

Only in this way can Western countries protect their technological superiority to the greatest extent without completely hindering normal economic and trade exchanges with China and achieving a balance between national security and economic interests. This will be a long-term and intricate process that will require the joint efforts of both government and business. In the face of the continuous improvement of China's scientific and technological strength, the challenge of maintaining technological competitiveness will become increasingly severe, and Western countries need to make forward-looking planning and layout at the strategic level.