The Netherlands has taken temporary control of Nexperia, a Chinese-owned chipmaker crucial to European industry, in a move that spotlights how countries are being pulled into the escalating US-China battle for technological dominance.
Headquartered in Nijmegen, Nexperia makes lower-end chips essential for automobiles and consumer electronics. The Dutch government’s unprecedented intervention followed direct pressure from Washington.
The American Ultimatum
The crisis was triggered by the U.S. government’s expansion of its “entity list”—a blacklist that imposes severe export restrictions:
- The Parent Company: Nexperia is 100% owned by the partially state-owned Chinese firm Wingtech, which was already on the U.S. entity list.
- The New Rule: In late September, the U.S. expanded its export controls to automatically include any subsidiary that is 50% or more owned by a listed firm, directly implicating Nexperia.
- CEO Must Go: A court document revealed that U.S. officials told the Dutch government in June that Nexperia’s Chinese CEO and shareholder, Zhang Xuezheng, would “almost certainly” have to be replaced for the company to receive an exemption from the U.S. restrictions.
The Dutch Government Takes Control
Citing the threat of being blacklisted by the U.S., the Dutch government made a “highly exceptional” move:
- Suspension: The Dutch government used the rare Goods Availability Act to take control and, via a court order, suspended CEO Zhang Xuezheng.
- Justification: Amsterdam cited “serious governance shortcomings” and a need to prevent Nexperia’s critical chips from becoming unavailable to the European automotive and industrial sectors in an emergency.
- The Scope: The intervention will last for one year, restricting Nexperia from relocating company assets, firing executives, or making other major decisions without government permission.
🇨🇳 Beijing’s Retaliation and Backlash
The move immediately escalated tensions, drawing swift retaliation and sharp criticism:
- Chinese Export Controls: China retaliated by imposing its own export controls, barring Nexperia’s Chinese operations from exporting some components.
- Wingtech’s Response: Nexperia’s parent company, Wingtech, strongly opposed the “discriminatory treatment” and vowed to pursue all legal and diplomatic channels, calling the takeover “excessive interference driven by geopolitical bias.”
- Official Condemnation: A state-run tabloid accused the Netherlands of “predatory actions” and a “blatant trampling of international rules.”
Nexperia is now in the difficult position of seeking exemptions from export restrictions imposed by both the U.S. and Chinese governments.
