Chinese-owned, Netherlands-based Nexperia, which makes billions of chips for cars and other electronics, has over the past month been at the centre of a global supply chain crisis, triggered by Beijing imposing export controls on the company’s China-made products in response to the Dutch seizure.
Beijing has in the past week cranked up the pressure on the Netherlands and the EU by repeatedly accusing the Dutch government of being uncompromising even as it loosened export curbs, as well as calling on Brussels to lobby for a revoking of the company’s seizure.
However, Wang’s remarks, published on the Chinese commerce ministry’s website, are the first time Beijing has publicly asked another country to push the Netherlands to reverse its Sept 30 decision to take control of Nexperia.
Ownership dispute
“(China) hopes Germany will play an active role in urging the Dutch government to take practical steps as soon as possible to correct its erroneous practices, revoke the relevant measures, and promote an early resolution of the issue,” Wang told Katherina Reiche, Germany’s economic affairs and energy minister.
Reiche’s ministry said it would not comment on bilateral talks between China and the Netherlands, while adding it was in close contact with its Dutch partners.
Dutch economic affairs minister Vincent Karremans said in a statement late yesterday the Netherlands and EU will work together to “repair supply chains as quickly as possible”.
Karremans’ office declined to address China’s complaint, but said the state intervention did not target Nexperia’s day-to-day operations.
It “only demanded continuity of production and supply” for Europe, following fears operations would be moved to China, a spokesman said.
A Dutch court has separately suspended Nexperia’s former Chinese CEO, the founder of Nexperia parent company Wingtech, over alleged mismanagement.
The German economic affairs ministry said Reiche emphasised to Wang the importance of good economic relations between Germany and China, but also pointed to growing trade imbalances.
Reiche “also made it clear that the new, broad-based Chinese export controls, including those on rare earths, do not comply with international standards and would have a significant impact on Germany as a business location,” her ministry said.
Beijing has described the Dutch action as improper interference in a Chinese company’s internal affairs and the root cause of the supply chain disruptions that ensued.
Following Beijing’s export controls last month, the sudden shortage of Nexperia chips, mostly packaged in China, hit the production of German carmakers and automotive suppliers, prompting Germany to lobby China on behalf of these firms.
While the supply shortages have eased in recent days after Beijing granted exemptions to its export controls, tensions over the company’s ownership and operations still remain and a breakdown in negotiations on this issue between China and the Netherlands could easily lead to another supply shortage.
“Ensuring the long-term stability of the global semiconductor supply chain requires the Dutch side to demonstrate a constructive attitude and take concrete actions,” Wang said.