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It is all about ASML and preventing their business with China.

Incredible what the EU puts up with.

Another demonstration of why depending on any American service is not worth the cost.

Use no U.S. part, and you can sell to the whole world. Use U.S. part, and you might ne restricted to the U.S.

No way this can backfire in any way.

In practice if you use no US part you will get sanctioned as a 'national security risk' or whatever anyway. Even if your product uses no US parts the customers who still want to interact with the US financial system (by e.g. having a USD account) will still be unable to purchase it.

What do you recommend they should be doing?

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