China urges Netherlands to ‘properly resolve’ chipmaker case

By Riyaz ul Khaliq

ISTANBUL (AA) - China has asked the Netherlands to “properly” resolve the chipmaker Nexperia case to “uphold the spirit of contract.”

This was conveyed to Dutch Economy Minister Vincent Karremans by Chinese Commerce Minister Wang Wentao during a phone call on Tuesday, according to a statement released by Beijing.

The two held talks after Beijing imposed an export ban on chips produced by the company’s factories in China.

Beijing's export ban followed Karremans’ move on Sept. 30 to take temporary control of Nexperia under a 1952 law that allows the Dutch government to block or reverse company decisions that could endanger national or European production.

“The measures taken by the Netherlands against Nexperia have seriously impacted the stability of the global supply chain,” Wang told Karremans.

He urged the Dutch side to maintain the security and stability of the global supply chain, “uphold the spirit of contract, … promptly and properly resolve the issue, protect the legitimate rights and interests of Chinese investors.”

Karremans justified the intervention by citing concerns that “crucial technological knowledge and capabilities” could leave Europe.

The Dutch ministry said it acted after receiving “serious signals” about the conduct of Nexperia’s director but declined to specify details.

Nexperia, headquartered in the Dutch city of Nijmegen, produces simple but essential chips used in cars and household electronics. The firm was acquired in 2019 by China’s Wingtech Technology.

The crisis has deepened as Nexperia faces looming US trade restrictions scheduled to take effect at the end of November unless an exemption is granted.