Dutch obliged to right the wrongs on Nexperia: China Daily editorial

The ongoing dispute surrounding Nexperia, a Netherlands-based chipmaker owned by China's Wingtech, threatens to unravel the delicate balance of the global semiconductor supply chains.

The roots of this conflict trace back to last October, when the Dutch government intervened in the operations of Nexperia, citing "national security" concerns. The intervention resulted in the sidelining of Wingtech. The move was met with swift countermeasures from China, which suspended exports of Nexperia's China-made chips.

After diplomatic negotiations, China announced it would exempt qualified exports and urged the Dutch authorities to "act from the perspective of maintaining the overall stability and security" of trade relations.

Yet Nexperia's Dutch headquarters still seems bent on consolidating its corporate control by all means. In its latest provocative move, the company's European management disabled the corporate accounts of all its employees in China starting last Tuesday, disrupting critical production processes of the Chinese subsidiary. Nexperia China posted a statement on WeChat on Friday saying that most operations had resumed and that the company was working to minimize any impact on future production and deliveries.

The latest move by the Dutch side is compounding mistakes rather than correcting them. Continuing in this manner will negatively impact the global semiconductor supply chain and Nexperia's future development.

China's Ministry of Commerce warned on Saturday that the latest action taken by Nexperia's European management has unnecessarily provoked new frictions and created fresh difficulties and obstacles for negotiations. Moreover, the move has severely disrupted normal business operations of the Wingtech subsidiary, and the Dutch side will bear full responsibility should these measures trigger another crisis in the global semiconductor industry and its supply chains.

This is not the first time the Dutch side has gone to great lengths to sabotage the production of Nexperia China. Last October, Nexperia's European management stopped supplying wafers to the company's packaging and testing facility in Guangdong province, forcing the Chinese unit to source supplies from local firms.

All this started with the Dutch government's intervention in Nexperia. The Dutch side must recognize the seriousness of the situation and immediately cease actions that harm the normal business operations of Nexperia. It is imperative that it return to the negotiation table to resolve differences through dialogue.

The tensions created by the Dutch government's act of banditry underscore a broader geopolitical struggle, driven by certain politicians in Europe irrationally seeking to reduce reliance on China under the guise of "de-risking". This strategy driven by the United States involves diversifying supply chains. Yet rather than enhancing national security and economic resilience, the policy moves only lead to increased costs, inefficiencies and heightened tensions between China and Europe.

Interdependence is not a risk, intertwined interests are not threats, and openness and cooperation will not weaken economic security. A dynamic balance in China-European Union economic ties is within reach should Europe have a correct perception of China.

For China-EU relations to develop steadily, it is crucial for the Dutch side to realize that the essence of bilateral economic and trade relations lies in complementary advantages.

To safeguard the future of the semiconductor industry and the global economy, a commitment to dialogue and cooperation is essential. The stakes are too high for unilateral actions and irresponsible protectionist measures.