This is CBSI in the world. I'm John Bachelors.

Chips, the high end of microchips, semiconductor business, a headline from the London Financial

Times, requiring interpretation. Netherlands and Japan join US in restricting chip exports

to China. I welcome Gordon Chang, at Gordon G. Chang, my colleague and friend, to help me

understand this story, which looks like restrictions of free trade, protectionism is the old word

for it. But it has to do with the Chinese military and advanced weaponry, and given the

general opinion that China is preparing for aggressive attack, something like Ukraine,

but much more violent. Paying attention to microchips is one way to put pressure on the

Chinese regime not to attack. I believe. Gordon, a very good evening to you. It says here,

Dio Mark's significant step in Washington's efforts to limit rivals' efforts to develop

its semiconductor industry. My memory of what you've taught me is that China has failed

over these years to build a high end chip-making industry, both the chips themselves and the

tools and machinery that make those chips. They've imported or borrowed or leased or stolen

what they've needed. This present regime that's being constructed with high-level talks,

including the United States, is it expected to be more successful than restrictions on

China in the past about chips? Good evening to you. Good evening, John. I think this will

be successful because there's only a certain number of companies that make the chips and

the chip-making equipment that China needs. So for instance, they need the tools. And there's

one Dutch company, ASML, that makes these machines extreme ultraviolet lithography. And it's,

although it's difficult to control the sale of chips, it is much easier to control the

more important thing, which are these chip-making equipment. So the tools, I think, are critical.

And that's why the Netherlands are part of this deal because of ASML.

...