Tuesday, 02 January 2024 12:17 GMT

China calls on Netherlands to withdraw order against Nexperia


(MENAFN) China on Monday urged the Dutch government to “immediately revoke” its administrative order targeting semiconductor manufacturer Nexperia, a foreign subsidiary of Chinese company Wingtech Technology Co., according to reports.

A spokesperson for China’s Ministry of Commerce said the situation stemmed from the Dutch government’s “inappropriate administrative intervention in corporate operations.” The ministry called on the Netherlands to “create favorable conditions for negotiations between the companies involved and to help restore the security and stability of global semiconductor industrial and supply chains,” according to reports.

The spokesperson added that Beijing has already taken measures to grant exemptions for compliant exports intended for civilian use, helping to maintain the smooth flow and stability of the global semiconductor supply chain.

On December 8, Chinese officials discussed the Nexperia case with Germany during a meeting between German Foreign Minister Johann Wadephul and Chinese Vice President Han Zheng, Trade Minister Wang Wentao, and Foreign Minister Wang Yi. The focus, according to the Chinese trade minister, is for the Dutch government to end “inappropriate administrative interventions,” stabilize the semiconductor supply chain, and mitigate risks to global industries.

The Dutch government assumed control of Nexperia in late September, citing concerns over potential technology transfers to Wingtech, using powers under the “Availability of Goods Act” for the first time. The move, aimed at blocking management decisions seen as a threat to Dutch or European security, followed warnings from the United States about Nexperia’s ties to China.

Wingtech described the Dutch intervention as “excessive interference driven by geopolitical bias,” according to reports.

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