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 on Tuesday (Nov 4) accused the Netherlands of not working with Beijing to resolve the 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 Nexperia on Sep 30 due to concerns about its Chinese parent Wingtech .

The Chinese commerce ministry’s accusation of continued Dutch inaction on the dispute underscores the difficulty of the Netherlands and China agreeing to a long-term solution for the ownership of Nexperia, which makes large volumes of basic chips used in cars.

“The Dutch side continues to act unilaterally without taking concrete steps to resolve the issue, which will inevitably exacerbate the adverse impact on the global semiconductor supply chain,” China’s commerce ministry said in a statement published on its official website.

“This is something neither China nor the global industry wishes to see.”

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.

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.

While most of Nexperia’s chips are produced in Europe, around 70 per cent are packaged in China before distribution.

The resulting chip shortages have threatened to halt assembly lines and lead to worker furloughs in Europe.

Industries dependent on Nexperia’s chips are waiting for a political solution to the trade dispute after the White House announced last week, following talks between US President Donald Trump and Chinese President Xi Jinping, that 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 that there had been “progress” in talks on Nexperia involving the Dutch and Chinese governments, without elaborating further. REUTERS