China's Xi urges Netherlands not to tighten semiconductor export restrictions

Chinese President Xi Jinping has called on the Netherlands not to step up restrictions on semiconductor-related exports to China.

Xi met with Dutch Prime Minister Mark Rutte at the Great Hall of the People in Beijing on Wednesday.

According to China's Foreign Ministry, Xi stressed there is no way out for decoupling, and that opening-up and cooperation are the only choice.

Xi also reportedly said he hopes the Netherlands will continue actively promoting mutual understanding and constructive relations between China and Europe.

After the talks, Rutte released an online post. It says, "We also had a candid conversation about our economic relations -- about cooperation but also about concerns that China puts up unfair obstacles for European companies that want to do business here."

The Netherlands has leading technology on production equipment for cutting-edge chips. The country is strengthening export restrictions in the semiconductor sector, along with the United States and Japan, citing concerns about military applications.

The rift between China and the US continues over semiconductors and other advanced technologies. And the outlook for the Chinese economy is unclear.

Observers say Xi hopes better ties with the Netherlands will help bring technology and investment from Europe to China.