Economy Minister: “China’s Recent Actions are Positive…Continuous Constructive Discussions”
(BRUSSELS=Yonhap News) Correspondent Hyun Yoon-kyung reports that the Netherlands has announced its decision to cease intervention in Nexperia, a semiconductor manufacturing company for vehicles, according to reports from international media including Germany’s dpa.
On the 19th (local time), Dutch Economy Minister Vincent Karremans issued a statement saying, “Considering recent developments, I believe this is an appropriate time to take constructive actions,” indicating this decision.
Minister Karremans mentioned having productive talks with Chinese authorities in recent days, implying that this action was coordinated with China.
He positively assessed China’s recent actions and added, “The Dutch government will continue to engage in constructive dialogue with Chinese authorities.” It is reported that a high-level Dutch delegation is currently in Beijing for discussions with China.
By stating they will step back from Nexperia, the Netherlands is seen as moving towards resolving the tensions that have recently escalated between China and the Netherlands over this company.
Nexperia, headquartered in Nijmegen, Netherlands, was acquired in 2019 for $3.6 billion by Wingtech, China’s largest smartphone assembly company.
At the end of September, the Dutch government, citing “inappropriate” management, invoked the “Product Availability Act” for the first time, taking emergency measures to strip Zhang Xuezheng, Wingtech’s chairman, of Nexperia’s control. In response, China retaliated by banning the export of Nexperia products produced mainly at its domestic factories, putting the global automotive industry on the brink of a chip shortage crisis.
Following the US-China summit last month, where both countries agreed to a one-year deferment on export control measures, China lifted the export ban on Nexperia chips, granting permissions on an individual company basis. However, the ongoing conflict between the Dutch headquarters and the Chinese subsidiary has prevented the complete resolution of the supply shortage. Additionally, before fully resuming chip supply, China had demanded that the Netherlands reduce its control over Nexperia.