Talks prompt Dutch action on Nexperia

China has urged the Netherlands to take further action after the latter suspended its administrative order against chipmaker Nexperia, as Commerce Minister Wang Wentao separately raised the issue with senior officials from the United Kingdom and the United States — a move signaling Beijing's push for a coordinated international response to safeguard the company's lawful rights and stabilize the global semiconductor supply chain.

During a video meeting with UK Secretary of State for Business and Trade Peter Kyle on Thursday, Wang said that the Netherlands' recent initiative to suspend its administrative order represents "a first step in the right direction toward resolving the issue appropriately".

"We hope the Dutch side will truly shoulder its responsibilities, take concrete actions at the earliest opportunity and facilitate companies in resolving internal disputes through lawful consultations, thereby fostering more enabling conditions for restoring security and stability to the still-fragile global semiconductor industry and supply chains," Wang added.

Kyle said that a long-term solution lies in relevant enterprises resolving their internal disputes through consultations, and that the UK is willing to communicate with the Dutch side on this matter.

In a separate meeting with US Ambassador to China David Perdue on the same day, Wang elaborated on China's position regarding the Nexperia issue as well. During the meeting, Wang said that China and the US need to foster a mindset that the two countries must coexist peacefully and can achieve win-win outcomes by slashing the list of problems and expanding the scope of cooperation.

On Sept 29, just one day prior to the Dutch ministerial order against Nexperia — the Netherlands-based semiconductor manufacturer owned by China's Wingtech Technology — the US introduced the Affiliates Rule, which extends equivalent export control sanctions to subsidiaries in which entities already on the US "Entity List" hold more than a 50 percent stake.

Since Nexperia is wholly owned by Wingtech, the former automatically fell under the same US export restrictions as its parent company. Analysts said that this situation could have triggered the Dutch government's intervention.

On Sept 30, the Netherlands invoked a rarely used Cold War-era statute — the Goods Availability Act — to assume control of Nexperia, following what it described as "acute signals of serious governance shortcomings" and concerns that the firm's former chief executive was seeking to relocate its European operations to China.

On Nov 10, the US announced it would suspend the implementation of the Affiliates Rule for one year, as part of the outcomes of the China-US trade talks in Malaysia in October. This development provided relief for Nexperia, which was one of the primary companies affected by the rule.

Earlier this week, the Dutch government also suspended the administrative order following talks with Chinese authorities in Beijing. This "show of goodwill", according to Dutch Minister of Economic Affairs Vincent Karremans, was a response to measures taken by China to ensure the resumption of chip exports, easing immediate pressure on supply chains.

Wingtech said in a statement on Thursday night that the Dutch Ministry of Economic Affairs should "permanently" revoke its order while also withdrawing its support in court proceedings, to ensure the restoration of legitimate control to the Chinese shareholders and the reinstatement of all legal rights for Chinese personnel.

Jian Junbo, director of Fudan University's Center for China-Europe Relations, said that the ultimate resolution remains uncertain, and the impact on related industries, including automakers, will directly depend on the final settlement by the Dutch government.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said that cooperation between China and the Netherlands in the semiconductor sector remains extensive and holds significant implications for both nations and the global industrial chain.

wangkeju@chinadaily.com.cn