China urges Netherlands to correct ‘mistake’ over chipmaker Nexperia

China has called on the Netherlands to reverse what it described as a “mistake” over chipmaker Nexperia, accusing The Hague of triggering a “crisis” in global supply chains by seeking to control the Chinese-owned company. 

In a statement on Wednesday, China’s Ministry of Commerce urged the Netherlands to “immediately correct its mistake” and end what it called “improper administrative interference” in Nexperia, saying the Dutch stance was “perplexing” at a time of industry anxiety about semiconductor security. 

The Netherlands issued an order in September barring Nexperia from making important decisions without government approval, citing concerns that its Chinese owner, Wingtech, was seeking to relocate European production to China and the need to ensure chip supplies. 

The order followed a warning from the United States that Nexperia would likely be placed on Washington’s sanctions list unless it replaced its Chinese chief executive, Zhang Xuezheng. 

The Dutch government, which has denied acting under US pressure, said last month it had suspended the order—issued under the Cold War-era Goods Availability Act—after “constructive” talks with Beijing. A Dutch court ruling that forced out Zhang over alleged mismanagement remains in effect. 

The Dutch Ministry of Foreign Affairs and Nexperia did not immediately respond to requests for comment. Beijing and The Hague have been at odds for months over the Nijmegen-based chipmaker, a major producer of low-end semiconductors used in cars and consumer electronics. 

After the Dutch order, China retaliated by blocking exports of finished chips packaged at Nexperia’s Chinese production facilities, before saying last month it would exempt civilian-use chips amid concerns about disruption to global supply chains. Japanese carmakers Honda and Nissan announced production cuts earlier this year due to chip shortages linked to the dispute. 

Source: Al Jazeera