Dutch Government Withholds Sensitive Export Data from Public Disclosure
A Shift in Transparency
In a move that has sparked concern among experts, the Dutch government has decided to exclude billions of euros worth of sales by technology company ASML to China from public disclosures on sensitive goods exports. This policy change, which has not been previously reported, marks a significant departure from the Netherlands’ previous practice of routine disclosure of “dual use” goods exports with potential military applications.
The Importance of Transparency
Experts who rely on public data to understand states’ military capabilities, including parliament, may no longer have a complete picture of the situation. This lack of transparency could have far-reaching consequences, as accurate assessments of states’ military capabilities are crucial in preventing conflict.
ASML’s Sales Data
Computer chip equipment maker ASML releases sales data for China, which amounts to around $7 billion worth in the first nine months of 2024. However, the company does not specify the type of machinery it sells by region, which is a matter of financial and military interest. The type of lithography tool that ASML customers buy determines the sophistication of the chips they can make, making this information highly valuable.
Government’s Decision
The Dutch government’s decision to exclude most of ASML’s Chinese sales from public disclosure dates back to September 2023. At that time, following pressure from the United States, the Netherlands introduced a national list of “dual use” goods considered to have military significance, focused on ASML’s DUV tools, which require a licence to export. The foreign ministry confirmed to Reuters that while it must disclose licence grants for goods considered sensitive by the European Union, such as EUV tools, that requirement does not extend to the DUV tools on the new Dutch list.
Reasons Behind the Decision
According to the foreign ministry, the reason for this exemption is that disclosing such information would be easily traced back to specific companies, thereby revealing commercially sensitive business data. However, critics argue that this lack of transparency could have serious consequences.
Criticism from Experts
Frank Slijper of peace organization PAX, which closely monitors arms exports, is critical of the policy. He believes that disclosure requirements exist to prevent conflict by ensuring accurate assessments of states’ military capabilities. “It’s in nobody’s interest to increase the level of secrecy,” he said.
The Bigger Picture
In a report sent by the Foreign Ministry to parliament in November, the Dutch government revealed that China was the sixth largest destination for Dutch “dual use” goods, with 253 million euros ($262 million) worth in 2023. However, if ASML’s “dual use” sales had been included, China would have been first ahead of Taiwan, South Korea, the U.S., and Britain, according to Reuters calculations. ASML declined to comment on the matter.
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