(Source: The Paper 2025-10-23)
According to the website of the Ministry of Commerce, on October 21, Minister of Commerce Wang Wentao held video talks and phone calls with European Commission w88 and Economic Security Commissioner Sefcowicz and Dutch Economic Minister Karremans respectively. In the communication between China and Europe and China and the Netherlands, the issue of Nexperia has become the focus.
More than half a month ago, the Dutch government implemented a "takeover" of Nexperia Semiconductor, a subsidiary of the Chinese company Wingtech Technology, based on the Cold War-era "Supply of Goods Law" and on the grounds of so-called "economic security." This move caused shock in the global technology community. In response, China quickly took countermeasures. On October 4, the Ministry of Commerce issued an export control announcement prohibiting Nexperia’s subsidiaries and subcontractors in China from exporting specific finished components and components.
The involvement of the United States has significantly increased the complexity and geopolitical nature of the incident. More than half a month after the incident unfolded, the Netherlands took the initiative to seek dialogue with China about Nexperia.
Tu Xinquan, Dean of the China WTO Research Institute at the w88 casinotold The Paper (www.thepaper.cn) that China’s rapid countermeasures also sent a clear signal to Europe. In the context of deeply intertwined global production and supply chains, dependence is two-way. China is not only interdependent with Europe in the supply chain, but also has the ability and determination to counterattack reciprocally. The chain reaction caused by unilateral sanctions will inevitably affect the initiator.
Cui Hongjian, a professor at Beijing Foreign Studies University’s w88 casino of Advanced Regional and Global Governance, told The Paper, “The Dutch side has taken the initiative to negotiate with China, obviously hoping to clarify its role and responsibility boundaries in the incident as much as possible through dialogue and contact. The actual role played by the Dutch government in this “takeover” operation will directly affect China’s final determination of the nature of the incident, and in turn determine China’s subsequent response measures.”
“The United States does not shy away from using its w88 power to win over allies”
In the phone call with Karemans, Wang Wentao said that China attaches great importance to Sino-Dutch economic and w88 cooperation. The relevant measures taken by the Dutch government against Nexperia have seriously affected the stability of the global production and supply chain. China urges the Dutch side to proceed from the overall situation of maintaining the security and stability of the global production and supply chain, uphold the spirit of contract and the principles of marketization and rule of law, properly resolve the problem as soon as possible, protect the legitimate rights and interests of Chinese investors, and create a fair, transparent and predictable business environment.
On September 30, Wingtech and its subsidiary Nexperia received a ministerial order from the Netherlands Ministry of Economic Affairs and Climate Policy, as well as a ruling from the Enterprise Tribunal of the Amsterdam Court of Appeal. The company’s control over Nexperia was temporarily restricted, and Nexperia’s chairman and CEO Zhang Xuezheng was suspended from his position.
On October 12, local time, the Dutch government declared that "there are serious governance flaws within Nexperia" and took intervention measures against Nexperia on the grounds of "concern that technology may be transferred to China" in order to "ensure the supply of semiconductors needed for European automobiles and other electronic products and maintain Europe's economic security."
Tu Xinquan said that it is "rare" for the Dutch government to use the Material Supply Law to intervene in a company.
According to Bloomberg, the Material Supply Act was enacted during the Cold War to ensure access to critical products in emergencies. According to the report, there is almost no precedent in Europe for the government to "take over" an overseas subsidiary of a Chinese company on the grounds of national security. Although Nexperia can continue production, the Dutch government now has the power to block or reverse management decisions it deems "harmful".
In response to the Dutch government’s “takeover” behavior, Wingtech responded on the 13th that the Dutch government’s global operational freeze on Nexperia on the grounds of unwarranted “national security” was an excessive intervention based on geopolitical bias rather than a fact-based risk assessment.
In recently disclosed court documents, it is clearly shown that the United States has pressured The Hague to replace Nexperia’s Chinese leadership as a condition for the company not to be included in the U.S. Department of Commerce’s entity list.
According to reports from Reuters, the Wall Street Journal and other foreign media on the 15th, according to court documents, officials from the U.S. Department of Commerce and the Dutch Ministry of Foreign Affairs held a meeting on June 12 and requested that then-Nexperia CEO Zhang Xuezheng be replaced to avoid the company being included in the entity list. According to the minutes of the meeting, since Zhang Xuezheng, the founder and chairman of Wingtech Technology, is also the CEO of Nexperia, if Nexperia is to be eligible for exemption, "it will almost certainly have to change the CEO."
From the previous export restrictions on ASML lithography machines to the current "takeover" of Nexperia Semiconductor, the Dutch government's restrictive measures against China in the semiconductor field are highly synchronized with the rhythm of U.S. policy. However, the Dutch government has always insisted that this decision was not made under the coercion of any other country. On the 19th, Karemans also publicly denied that the Netherlands and the United States had joined forces to intervene in Nexperia affairs.
Cui Hongjian pointed out that the Netherlands, as a "transatlantic" country with a relatively clear-cut stance in Europe, has shown gradually increasing initiative in cooperating with the United States and Europe in recent years, shifting from "passively yielding to pressure" to "actively cooperating with actions" to achieve its own goals. This trend may be further strengthened in the future.
He further supported this from another perspective. "Even from the perspective of a commercial contract, if there is a contract performance dispute, in theory it should be resolved through legal channels rather than direct government intervention. The Dutch side's current intervention, regardless of its original intention, essentially constitutes government interference in the normal operations of enterprises and deviates from market principles. In addition, there are public documents showing that the United States intervened in advance and used 'penetration rules' to exert pressure. The combination of the two clearly constitutes a unilateral action based on geopolitical considerations."
In fact, as early as December 2024, Wingtech Technology was included in the U.S. "Entity List" for allegedly "assisting the Chinese government to obtain entities with sensitive semiconductor manufacturing capabilities." According to relevant regulations, entities included in the list need to apply specifically for a license to purchase technology controlled by the United States. On September 29 this year, the U.S. Department of Commerce once again issued the "50% Penetration Rule", which will impose equivalent export control sanctions on subsidiaries of companies that hold more than 50% of the shares of companies listed on the U.S. "Entity List".
The "Wall Street Journal" published an article on the 15th, saying, "The takeover and removal of Nexperia Semiconductor highlights the impact of tensions between the United States and China on the entire technology industry, and also shows that the United States is not shy about using its w88 power to win over allies."
On October 16, Ministry of Commerce spokesperson He Yongqian pointed out that the US’s penetration rules are the initiator of harming Chinese companies. It is hoped that the Dutch side will maintain its independence, start from the perspective of safeguarding Sino-Dutch economic and w88 relations and maintain the stability of the global semiconductor supply chain, respect objective facts, adhere to the spirit of contract and market principles, correct wrong practices, effectively protect the legitimate rights and interests of Chinese investors, and create a fair, transparent and predictable business environment.
The United States has promoted a series of unilateral rules and sanctions in recent years, and their scope of application has continued to expand, posing severe challenges to multinational enterprises.
Cui Hongjian specifically pointed out that "transatlantic" countries like the Netherlands are highly consistent with the United States in the political and security fields, and are more deeply affected by U.S. policies and strategic orientations than other European countries. This strategic tendency undoubtedly further intensifies the political and institutional risks faced by companies operating in the Netherlands.
Pressure from European and American car companies to cut off supply pushes the Netherlands to speed up communication with China
The current w88 tensions caused by Nexperia are continuing to exert pressure on the global automotive industry. According to CNN, the chips produced by Nexperia are vital to automobile assembly. There are concerns that the w88 dispute may interrupt Nexperia's chip production, and it will not be easy to find substitutes.
Nexperia’s chips are not technically complex, but their supply is huge. According to data from semiconductor research institution TechInsights, Nexperia’s share in the automotive chip market such as transistors and diodes accounts for approximately 40%. According to Anshi’s official website, the company has more than 6,000 products certified for automotive applications, and its annual product shipments reach 110 billion pieces.
Tu Xinquan pointed out that more than 70% of Nexperia's packaging business is located in China. Although the technical threshold of packaging and testing is relatively limited, Europe theoretically has the ability to undertake independently, but the transfer of production capacity takes time, and it will also face practical difficulties such as finding suitable alternative suppliers and coordinating production capacity allocation. Such artificial supply chain disruptions caused by political interference will pose a significant threat to industrial stability. ”
This potential threat has been quickly transmitted to the lower reaches of the industrial chain, triggering widespread concern in the automotive industry.
The European Automobile Manufacturers Association said it would take months for member companies to secure new alternative supplies, and current chip inventories are expected to last only a few weeks.
According to a Reuters report on October 22, the German Automobile Industry Association stated that governments should currently work hard to "find quick and pragmatic solutions." Hildegard Müller, chairman of the association, warned: "If the supply interruption of Nexperia chips cannot be resolved in the short term, it may lead to significant restrictions on production capacity in the near future, or even trigger a production shutdown crisis."
John Bozzella, CEO of the Alliance for Automotive Innovation, said in a statement, "If shipments of automotive chips cannot be restored quickly, it will disrupt automotive production in the United States and many other countries, and have spillover effects on other industries." "We urge all parties to resolve the problem as soon as possible to ensure that the U.S. and global automotive manufacturing industries remain operational."
The urgent demands of the automobile industry and the pressure to stabilize the global supply chain have also pushed the Netherlands to speed up communication with China to a certain extent.
After ending the call with Wang Wentao, Dutch Minister of Economic Affairs Karemans issued a statement saying, "We (the Netherlands and China) exchanged views on further promoting a solution. This solution should take into account the economic interests of Nexperia, Europe and China." He also stated that he would continue to communicate with China to find a constructive solution.
According to the Financial Times, the European Commission’s w88 and Economic Security Commissioner Sefcovic also pointed out in talks with China on the 21st that Nexperia is a “bilateral issue of major concern that may have an impact on Europe and even the world”, and expressed support for resolving the dispute through “quick solutions”.
However, Cui Hongjian reminded that the current Nexperia incident is mainly a bilateral dispute between China and the Netherlands, but subsequent developments in the EU are worthy of attention. He pointed out, "If China does not respond clearly, it may encourage other European countries to follow this kind of behavior of intervening in Chinese companies on the grounds of 'national security', causing risks to spread from the semiconductor field to more key areas."
"China's purpose is to prevent this matter from becoming a 'dangerous precedent'. In consultations with the Netherlands, it firmly conveyed the signal that any unilateral discriminatory intervention against Chinese companies will face resolute and reciprocal countermeasures to prevent the spread of similar interference," Cui Hongjian said.
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