China accuses Netherlands of not working to fix Nexperia dispute
Written by: Eduardo Baptista and Toby Sterling
BEIJING/AMSTERDAM (Reuters) – China’s Ministry of Commerce accused the Netherlands on Tuesday of failing to work with Beijing to resolve a dispute over the Dutch government’s seizure of chipmaker Nexperia, warning that further supply chain disruptions could occur as a result.
The Dutch government took control of Nexperia on September 30 due to concerns about its Chinese parent company Wingtech.
The Chinese Ministry of Commerce’s accusation that the Netherlands remains inactive in the dispute underscores the difficulty of the Netherlands and China agreeing on a long-term solution over the ownership of Nexperia, which uses large amounts of basic chips in cars.
“The Dutch side continues to act unilaterally without taking concrete steps to resolve the issue, which will inevitably further increase the negative impact on the global semiconductor supply chain,” China’s commerce ministry said in a statement published on its official website. he said.
“This is something neither China nor the global industry wants to see.”
A spokesman for the Dutch Ministry of Economic Affairs, which intervened in Nexperia’s management, told Reuters that talks between the two governments were still ongoing.
“We are in communication with Chinese officials and our international partners to work towards a constructive solution that will be good for Nexperia and our economies,” the spokesman said in a statement on Tuesday.
Beijing’s warning of further cuts came as European auto suppliers rushed to grant exemptions to Chinese export restrictions on Nexperia products made in China, just days after the Dutch government seized them.
While most of Nexperia’s chips are manufactured in Europe, about 70% are packaged in China before distribution.
The resulting chip shortage threatened assembly lines with a halt and led to layoffs of workers across Europe.
Industries dependent on Nexperia’s chips are awaiting a political solution to the trade dispute after the White House announced last week that Beijing would “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China” following talks between US President Donald Trump and Chinese President Xi Jinping.
EU trade chief Maros Sefcovic said on Monday that “progress” had been made in Nexperia talks involving the Dutch and Chinese governments, without elaborating further.
(Reporting by Eduardo Baptista in Beijing and Toby Sterling in Amsterdam; Additional reporting by Beijing and Liz Lee in the Beijing newsroom; Editing by Tom Hogue and Jamie Freed)
