The VVD has asked parliamentary questions about an Eindhoven high-tech company opening a branch in China. This is to avoid US sanctions against China that would otherwise harm the company.
Concerns
KMWE, located on the Brainport Industries Campus, makes parts for ASML and Philips, among others. The company is opening a branch in China in order to avoid US sanctions against the Asian country, reported the ED earlier this week.
The VVD party in the House of Representatives is concerned about the move by KMWE. The faction wants to know whether opening a branch in China will allow the Chinese to buy products from the company that the Americans do not want to get their hands on. The faction is also concerned that by opening a branch in the country, China can extract technological secrets from the company.
Punishments
The VVD, therefore, wants to know whether there are possibilities from the Netherlands or the European Union to punish KMWE for opening the branch. The faction also wants to know whether the United States has any instruments to punish the company’s move.
International tensions
It is not the first time a company from the Brainport region has had to deal with the rising international tensions between the US and China. ASML is no longer allowed to sell chip machines to Chinese companies by order of Washington. Furthermore, it is also not allowed to hire employees from countries that are not in good standing with the US.
The Eindhoven city council itself also contributed to this by breaking the friendship with the Chinese city of Nanjing, a decision that was, incidentally, heavily criticised.
Source: Studio040
Translated by: Seetha
