The Dutch government has paused its earlier intervention regarding Nexperia, a semiconductor manufacturer owned by a Chinese company. This development follows discussions between Dutch officials and representatives from China. In September, the Dutch government took action against Nexperia due to concerns about “serious governance shortcomings” and the implications for the supply of semiconductors in Europe, particularly for automobile and electronic goods. In retaliation, China had blocked exports of chips produced by Nexperia.
On Wednesday, the Dutch government announced the suspension of its previous decision, citing “constructive talks” with Beijing as the basis for this move. China has expressed approval of the Dutch decision, viewing it as a potential step toward resolving the ongoing issues.
Nexperia plays a crucial role in supplying basic computer chips essential for the automotive industry, and ongoing shortages in semiconductor availability have raised alarms for global supply chains. The Dutch government’s decision may help reduce tensions between the European Union and China, which have intensified recently over trade relations and geopolitical issues.
Vincent Karremans, the Dutch Minister of Economic Affairs, stated that the decision to suspend the intervention was made ahead of further discussions with the Chinese government. The Dutch government had previously invoked the Goods Availability Act due to allegations involving the former CEO of Nexperia and a concerning transfer of company assets to foreign interests.
A Dutch court had recently ordered the removal of the ex-CEO, Zhang Xuezheng, amidst claims of mismanagement. The Dutch government aimed to avoid potential chip shortages that could arise during emergencies. Additionally, in December, the US government added Wingtech, Nexperia’s parent company, to its “entity list” due to national security concerns, hindering exports from US firms without special approval.
Despite the recent Dutch decision, China cautioned that this step does not fully address the underlying issues affecting the global semiconductor supply chain. Wingtech has indicated plans to contest the Dutch court’s ruling regarding its control over Nexperia.
Source: https://www.bbc.com/news/articles/cz7p7j83rn1o?at_medium=RSS&at_campaign=rss