Past year full of China-Europe highlights

10. Nexperia case moves toward a resolution

With the stated reason that Nexperia, a semiconductor company owned by Chinese parent company Wingtech Technology, had "serious governance shortcomings" that posed a "threat" to crucial technological knowledge and capabilities, and economic security, the Netherlands government announced on Sept 30 it would take control of Nexperia for one year, with a court order following one week later.

Under pressure from both public opinion and a reduction in chip supplies to European and US carmakers, as well as after coordination and talks between China, the EU, and the Netherlands, the Netherlands' Minister of Economic Affairs Vincent Karremans announced a suspension of his administrative order about Nexperia, but the court order is yet to be overturned.

On Jan 14, the Enterprise Chamber of the Amsterdam Court of Appeal held a public hearing to hear arguments on whether it should launch a formal investigation into alleged mismanagement at Nexperia, with a decision expected to be made within a few weeks. If Wingtech can get its rights protected, effects upon the global supply chain will be minimized and smooth supply resumed; but if not, the crisis might continue, which is a result that no one can benefit from.

Lai Suetyi, an associate professor and Jean Monnet chair at the Center for European Studies at Guangdong University of Foreign Studies, said the European Union showed caution not to be further dragged into the China-US trade and technology war, and called for a resolution at the corporate level instead of stepping in to support the Netherlands government.

The Chinese side demands a revocation of the executive order and withdrawal of the court ruling to stabilize global supply chains. An imminent end to the saga would show a return to pragmatism for the Netherlands in its China policy, which would be very welcomed by China and the rest of the world.

Contact the writer at zhangzhouxiang@chinadaily.com.cn.