China urges Dutch government to revoke administrative order against semiconductor manufacturer Nexperia

By Berk Kutay Gokmen

ISTANBUL (AA) - China urged the Dutch government Monday to “immediately revoke” its administrative order against semiconductor manufacturer Nexperia, an overseas subsidiary owned by Chinese company Wingtech Technology Co.

A spokesperson for China’s Ministry of Commerce pointed out that the Nexperia situation was caused by the Dutch government's “inappropriate administrative intervention in corporate operations,” according to the state-run Xinhua news agency.

The ministry urged the Dutch government to “create favorable conditions for negotiations between the companies involved and to help restore the security and stability of global semiconductor industrial and supply chains.”

Beijing “has already taken concrete measures to grant exemptions for compliant exports intended for civilian use, creating essential conditions for the stability and unimpeded flow of the semiconductor supply chain,” the spokesperson said.

On Dec. 8, China and Germany discussed the Nexperia chipmaker case when German Foreign Minister Johann Wadephul met with Chinese Vice President Han Zheng, Trade Minister Wang Wentao and Foreign Minister Wang Yi in Beijing.

The priority currently is for the Dutch government to end “inappropriate administrative interventions,” stabilize the semiconductor supply chain and avoid risks to global industries, the Chinese trade minister said during the meeting.

The Dutch government took control of Nexperia in late September, citing worries about the possible transfer of technology to Wingtech. To do this, it invoked never-before-used powers under a Dutch law known as the “Availability of Goods Act.”

The intervention, which blocked management decisions deemed a threat to Dutch/European security, followed US warnings about Nexperia's ties to China.

Wingtech called the Dutch government’s intervention in Nexperia “excessive interference driven by geopolitical bias.”