(MENAFN) China has called on the Netherlands to “properly” resolve the dispute involving chipmaker Nexperia, stressing the need to “uphold the spirit of contract,” according to Beijing’s recent statement.

Chinese Commerce Minister Wang Wentao conveyed this message to Dutch Economy Minister Vincent Karremans during a phone call on Tuesday, following escalating tensions after China imposed an export ban on chips made at Nexperia’s factories in China.

The export restrictions came shortly after Karremans’ September 30 decision to take temporary control of Nexperia under a 1952 Dutch law, which enables the government to block or reverse corporate actions deemed harmful to national or European production security.

Wang told Karremans, “The measures taken by the Netherlands against Nexperia have seriously impacted the stability of the global supply chain.” He further urged the Netherlands to “maintain the security and stability of the global supply chain, ‘uphold the spirit of contract, … promptly and properly resolve the issue, protect the legitimate rights and interests of Chinese investors.’”

In defense of the government intervention, Karremans cited concerns that “crucial technological knowledge and capabilities” might be transferred out of Europe. The Dutch ministry noted it acted on “serious signals” regarding the behavior of Nexperia’s director but did not provide additional details.

Nexperia, based in Nijmegen, Netherlands, manufactures essential yet straightforward chips widely used in automotive and household electronics. The company was acquired in 2019 by China’s Wingtech Technology.

The dispute is intensifying as Nexperia faces imminent U.S. trade restrictions set to take effect at the end of November, pending any exemptions granted.

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