China asks Netherlands to correct Nexperia 'mistakes', remove obstacles

China's commerce ministry on Wednesday sharply criticised the Netherlands, asking it to correct its "mistakes and remove obstacles" affecting the global semiconductor supply chain, Reuters reported.

 

China said the Dutch government has failed to act responsibly and continues to take steps that are harming the stability of global chip production and supply.

 

According to the report, China said the Netherlands has ignored repeated concerns raised by Beijing and has taken no meaningful action to fix the situation. Beijing said that Dutch decisions have disrupted the normal functioning of the semiconductor supply chain, which is affecting companies and markets around the world.

 

What is the Nexperia issue?

The dispute centres on Nexperia, a Dutch chipmaker that is owned by Wingtech, a Chinese company. In September, the Dutch government took control of Nexperia. The Netherlands said the move was necessary to stop the company’s founder from shifting sensitive technology and production capacity to China.

 

China strongly opposed this step and said it was an improper interference in a private company’s internal affairs. In response, Beijing blocked the export of Nexperia’s chips, many of which are packaged in China, leading to further supply disruptions.

What has the Netherlands said?

According to Reuters, Dutch Economic Affairs Minister Vincent Karremans has defended the decision to intervene in Nexperia’s operations. In a recent media interview, he said the move was not enjoyable but was necessary in the interest of national security.

What has China said?

Earlier this month, China said it had actively helped talks between Wingtech and Nexperia to resolve the dispute. Beijing said that Wingtech invited Nexperia’s independent directors and its equity trustee to China for discussions on company control and restoring supply chain stability.

 

China also urged the Dutch government to honour earlier agreements and help facilitate the visit through its embassy in Beijing.

 

China’s commerce ministry said the problem began because of the Dutch government’s excessive interference. It urged the Dutch Ministry of Economic Affairs to withdraw its administrative order, encourage former Nexperia executives to drop legal cases in a Dutch court, and create conditions for internal company talks to move forward.

What's the current situation?

Officials from both countries held two rounds of in-person talks in Beijing on November 18 and 19. During these meetings, China repeated that the Dutch actions were the main reason behind the current disruption in chip supply chains.

 

The Dutch side earlier said it was open to suspending the economic affairs minister’s administrative order under the country’s Goods Availability Act, signalling possible movement towards resolving the dispute.