The European Union and China were reportedly discussing a reciprocal sanctions delisting involving Sindlhauser Materials GmbH, a German company in ASML’s supply chain. Tom’s Hardware reported the talks on October 15, citing Bloomberg’s October 14 report.

Under the reported proposal, China would ease export controls affecting Sindlhauser, while the EU would lift restrictions on an unnamed Chinese firm. Tom’s Hardware described that firm as accused of aiding Russia’s war against Ukraine. The discussions reportedly took place during a Beijing visit by Maroš Šefčovič, the EU Commissioner for Trade and Economic Security.

Why Sindlhauser matters to ASML’s supply chain

Tom’s Hardware describes Sindlhauser as a German precision-manufacturing and advanced-coatings company that relies almost entirely on Chinese rare earths and critical minerals. The company is part of ASML’s supply chain.

The report says China’s controls restrict Chinese exporters from selling dual-use items—goods with both civilian and military applications—to Sindlhauser. They also restrict third parties from transferring China-origin dual-use items to the company. Tom’s Hardware reported that Sindlhauser could face a risk of closure in the coming months if the restrictions remained.

German federal and Bavarian authorities reportedly helped the company explore alternative suppliers and ways to recycle existing materials.

The reported EU approval threshold

China placed Sindlhauser and 13 other European companies on its export-control list in July 2026, according to Tom’s Hardware. The report said an EU delisting would require unanimous support from member states. It also said the two sides had agreed to share more information and provide advance warning of future export restrictions.