The Chinese Ministry of Commerce accuses the Netherlands of not cooperating constructively in finding a solution to the conflict surrounding chipmaker Nexperia. Beijing warns that further disruptions to the supply chain are inevitable.
The conflict escalated when the Dutch government took control of Nexperia on September 30. The move was intended to allay concerns about Chinese parent company Wingtech. The Netherlands fears that Nexperia’s expertise will be siphoned off to China. Beijing responded a few days later with export restrictions on Nexperia products from China.
The Chinese authorities claim that they are acting responsibly by granting exceptions to the export restrictions. However, the Netherlands is said to be making no comparable efforts. “The Dutch side persists in its unilateral course without taking concrete action to resolve the issue,” the Chinese Ministry of Commerce said in a statement.
European automotive sector under pressure
Although Nexperia produces most of its chips in Europe, about 70 percent are packaged in China before distribution. The export blockade threatens to shut down assembly lines. European car suppliers are expressing serious concerns about the continuity of their production.
Various industries are waiting for a political solution. The White House announced last week that China would take “appropriate measures” to resume trade from Nexperia’s Chinese facilities. EU Trade Commissioner Maroš Šefčovič reported “progress” in the talks on Monday, without giving details.
A spokesperson for the Dutch Ministry of Economic Affairs confirmed that consultations are ongoing. “We remain in contact with the Chinese authorities and our international partners to work towards a constructive solution that is good for Nexperia and our economies,” the spokesperson said.
Bilateral relations at stake
China is calling on the Netherlands to take into account bilateral relations and the broader trade relationship between China and the EU in its search for a solution. The ministry emphasizes that neither China nor global industry will benefit from further escalation.
Recent revelations about the possible theft of trade secrets by the Chinese executive have further complicated the situation. The Dutch intervention followed shortly after US sanctions against Wingtech.
Nexperia produces large volumes of chips for the automotive industry, among others. Although the processors are not high-end, they are essential for modern vehicles and electronics. A prolonged disruption would have a significant impact on the European manufacturing sector.
The Netherlands and China have often been in conflict over the chip sector. ASML equipment for manufacturing advanced chips has been banned from export to China for years. The Dutch government has often been pressured by Washington in this regard, but beyond American influence, the cabinet has also introduced restrictions on its own initiative.