Onus on Dutch to resolve problem of its making: China Daily editorial

The announcement by Dutch Minister of Economic Affairs Vincent Karremans that he has canceled his planned December visit to China — citing scheduling differences — is the latest illustration of the difficulty of resolving the Nexperia issue. At a moment when constructive engagement is urgently needed, the Dutch side should do more to take concrete actions to resolve the problem of its own making.

According to the timeline Karremans himself released, the Dutch side directly intervened in Nexperia's affairs on Sept 30, carrying out a chain of actions based on a Cold War-era "national security" narrative. It seized control of the company, prompted emergency rulings that stripped its Chinese owner Wingtech of voting rights, and suspended the company's CEO — all without due process and without hearing Wingtech's position. Only after these unilateral moves did the Dutch side inform its international partners.

Its subsequent actions show that its "national security" justification is merely a pretext. Politicizing normal commercial operations and forcibly intervening in a market-driven corporate structure runs counter to the basic norms governing international economic cooperation and damages global industry and supply chains. China has therefore urged the Netherlands to return to the track of dialogue, consultation and rules-based interaction to resolve the issue.

Wingtech's recent decision to sue the Dutch government — after the Netherlands took no corrective steps during the respite created by the latest round of China-Netherlands negotiations — speaks volumes about the Dutch government's failure to match its deeds with words. While China has demonstrated sincerity and restraint, the Dutch side has maintained its administrative measures, even as it publicly claims to seek a solution. The contrast between its stated intentions and actual behavior is too stark to ignore.

The Dutch government's approach exploits a "backdoor". It has not moved to address the emergency ruling that was issued at its own request, based on an outdated Cold War law. If the Dutch government cited "judicial independence" for its inability to do so, it is obliged to explain its enabling of the whole judicial process, including the ruling, from the very beginning.

If the Dutch government intends to use alleged "judicial independence" as a stall tactic, Beijing will not sit idly by. China will take the necessary measures to safeguard the legitimate rights and interests of Chinese enterprises. The consequences arising from such an escalation must be borne by the Dutch government.

The broader context is equally telling. As Chinese officials pointed out in recent statements, the root cause of the dispute lies in the increasing pressure created by Washington's so-called "affiliate rules", which target Chinese entities by exerting extraterritorial control through US allies. But the US administration itself has agreed to suspend the application of these affiliate rules following the recent China-US trade consultations in Kuala Lumpur. Yet the Dutch government continues to follow a path driven by earlier US pressure, even after Washington has recalibrated its approach. This has left the Dutch government in an untenable and self-contradictory position.

The Nexperia issue has already disrupted the automotive supply chains in Europe and beyond, undermined market confidence and created unnecessary tension between China and the Netherlands. The progress painstakingly achieved through diplomatic engagement must be cherished. The dispute can and should be resolved, but only through sincere dialogue on the basis of facts, market principles and international norms.

As a Dutch saying goes, he who burns his behind, must sit on his blisters. If the Dutch government truly seeks to stabilize bilateral economic relations, safeguard supply-chain security and restore business confidence, it must take solution-oriented actions. That means correcting its missteps, ensuring that its administrative orders and related judicial actions are rolled back in parallel, and engage with China honestly rather than attempting to play tricks.