(Bloomberg) -- Chinese President Xi Jinping criticized “technological barriers” during Dutch Prime Minister Mark Rutte’s visit to Beijing as the US pushes to tighten controls on ASML Holding NV’s chipmaking-equipment sales to the Asian country.

“Artificially creating technological barriers and cutting off industrial and supply chains will only lead to division and confrontation,” Xi said, according to state broadcaster CCTV. “The Chinese people also have the right to legitimate development, and no forces can hinder the pace of China’s technological progress.”

The trip comes as the Netherlands, one of the world’s top sources of machinery and expertise needed to make advanced semiconductors, is facing increasing pressure from Washington to forge a global blockade to stifle Beijing’s rise in chipmaking. ASML is the country’s and Europe’s most valuable tech company, and China is one of its biggest customers.

Read More: US Urges Allies to Squeeze China Further on Chip Technology

Rutte refused to go into details on the talks between the two countries on export control restrictions in the semiconductor sector. “At least we try to limit the impact on supply chains,” Rutte told reporters Wednesday.

Chinese Premier Li Qiang also told Rutte in a meeting that he hopes Europe will be cautious in introducing restrictive trade and economic policies, according to another CCTV report.

Pressure from the US government pushed the Netherlands last summer to announce plans to prohibit ASML, the maker of cutting-edge chip gears, from shipping some of its lithography machines to China. That came years after ASML was prohibited from selling its most-advanced equipment to the Asian nation.

The Dutch government was also largely silent when the Biden administration took a unilateral step that further limited the export of ASML machines by controlling the sale of specified foreign-made machinery with any amount of American materials. ASML also had to cancel shipments of some of its machines to China at the request of the US administration, weeks before export bans on the high-end chipmaking equipment came into effect in January, people familiar with the issue had told Bloomberg. 

Chinese Clients

This year, the US struck again. It is now urging the Netherlands to stop ASML from servicing and repairing sensitive chipmaking equipment that Chinese clients purchased before limits on sales of those devices were put into place this year, the people said. 

The Hague has responded coolly to Washington’s latest push as the Dutch have been navigating a middle ground between the US and China in the escalating battle over the world’s chip supply chain. China is one of the Netherlands’ biggest trading partners.

Stuck in the middle of the growing political tensions, ASML’s boss Peter Wennink has been pushing back against the limits on his company’s business in China. The Dutch company recently reported significant pickup of revenue from China before the new curbs kicked in this year.

The relations between China and the Netherlands have also been strained due to a slew of espionage incidents. Earlier this year, the Dutch intelligence agency said it uncovered an attempt backed by the Chinese state to use malware to spy on a computer network used by the country’s armed forces. Last year, ASML accused a former China-based employee of stealing confidential information.

A recent Dutch intelligence agency report said China “poses the greatest threat” to the nation’s economic security.

“With China we discussed some of the worries we have. One being Ukraine, where China can do more,” Rutte said. “Secondly, a level playing field and protection of intellectual property.” He added that he mentioned the hacking allegations in his meeting with Xi as it is “a sticking point.”

--With assistance from Phila Siu and Jasmine Ng.

(Updates with press conference remarks from fourth paragraph)

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