China has renewed its fight with the Netherlands over one of the key suppliers of car companies, including Volkswagen, BMW, Mercedes and GM. In its latest accusations, China’s commerce ministry said the Netherlands had failed to work with Beijing to resolve the dispute over the Dutch government's seizure of chipmaker Nexperia. According to a report by the news agency Reuters, the Chinese ministry warned that this lack of cooperation could lead to further supply chain disruptions. The Dutch government took control of Nexperia in September due to concerns regarding its Chinese parent company, Wingtech. Beijing's warning follows the rush by European automotive suppliers to secure exemptions to Chinese export restrictions on Nexperia products made in China, which were imposed shortly after the seizure.
The commerce ministry stated that China acted responsibly by offering these exemptions, but the Netherlands has not responded similarly. It called on the Netherlands to
"stop interfering" in Nexperia's internal affairs and to work in a
"constructive manner" with the Chinese government to find a solution.
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What China said about the Dutch government taking control of Neperia
In a statement published on its official website (as seen by Reuters), China’s commerce ministry wrote:
“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. Neither China nor the global industry wishes to see this.”The Chinese ministry claimed that the Netherlands has not taken action on the dispute, highlighting how difficult it is for the two countries to reach a long-term agreement on who should own Nexperia. This company produces large quantities of basic automotive chips.
What the Netherlands said about its Nexperia dispute with China
A spokesperson for the Dutch economic affairs ministry, which stepped in to take control of Nexperia's management, told Reuters that discussions between the two governments are still ongoing.
In a statement to Reuters, the spokesperson said:
“We remain in contact with the Chinese authorities and our international partners to work toward a constructive solution that is good for Nexperia and our economies.”While most of Nexperia's chips are produced in Europe, around 70% 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.
Industries dependent on Nexperia's chips are waiting for a political solution to the trade dispute following talks between US President Donald Trump and Chinese President Xi Jinping. Last week, the White House announced that Beijing
“would take appropriate measures to ensure the resumption of trade from Nexperia's facilities in China.”Meanwhile, EU trade chief Maros Sefcovic recently said that there had been
"progress" in talks on Nexperia involving the Dutch and Chinese governments, without elaborating further.
However, China's commerce ministry reminded that it hoped the Netherlands would take into account bilateral ties and China-EU trade relations while negotiating a resolution of the dispute over Nexperia.