China accuses Netherlands of not working to fix Nexperia dispute
The resulting chip shortages have threatened to halt assembly lines and lead to worker furloughs in Europe
[BEIJING/AMSTERDAM] China’s commerce ministry accused the Netherlands on Tuesday (Nov 4) of not working with Beijing to resolve a dispute surrounding the Dutch government’s seizure of chipmaker Nexperia, and warned of further supply chain disruptions as a result.
The Dutch government took control of Netherlands-based Nexperia on Sep 30 due to concerns about its Chinese parent Wingtech. Nexperia makes large volumes of basic chips used in cars.
Beijing’s warning of further disruptions comes as European automotive suppliers rush for exemptions to Chinese export restrictions on Nexperia products made in China that were imposed days after the Dutch government’s seizure.
Tuesday’s statement cast doubt on recent statements from the White House and European Union officials suggesting that a long-term resolution of the dispute could be reached soon.
China warns of disruption to semiconductor supply chain
The Chinese commerce ministry said that while Beijing had acted responsibly by offering the exemptions, the Netherlands had not responded in kind. It called on the Dutch to “stop interfering” in Nexperia’s internal affairs and work in a “constructive manner” with Beijing to reach a solution.
“The Dutch side persists in its unilateral course without taking concrete actions to resolve the issue, which will inevitably deepen the adverse impact on the global semiconductor supply chain,” it said in a statement published on its official website.
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“Neither China nor the global industry wishes to see this.”
The Netherlands should take into account bilateral ties and China-EU trade relations, the ministry added.
A spokesperson for the Dutch economic affairs ministry, which intervened in Nexperia’s governance, told Reuters that talks between both governments were still underway.
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“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 on Tuesday.
While most of Nexperia’s chips are produced in Europe, around 70 per cent are packaged in China before distribution. The chip shortages caused by Beijing’s export controls have threatened to halt assembly lines and lead to worker furloughs in Europe.
Even if Beijing grants exemptions, several outstanding issues remain, including Nexperia suspending supplies of wafers to its Chinese assembly plant, the Dutch company’s China unit asserting its right to operate independently from Nexperia Netherlands, and a Dutch court’s suspension of former Nexperia CEO and Wingtech founder Zhang Xuezhen, citing mismanagement.
Following talks between US President Donald Trump and Chinese President Xi Jinping last week, the White House said Beijing “would take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China”.
EU trade chief Maros Sefcovic said on Monday there had been “progress” in talks on Nexperia involving the Dutch and Chinese governments, without elaborating. REUTERS
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