The Dutch minister previously sanctioned by China has surprisingly led a delegation to visit China—is he coming to return NXP Semiconductor?

According to reports, Dutch Minister of Foreign Trade Schulte, who was placed on China's sanction list, is set to come to China in the coming days. From July 7 to 9, he will be visiting Beijing and Shanghai with a business delegation comprising 17 Dutch enterprises. This marks the first time since April 2018 that a Dutch minister has personally led a trade mission to China.

The two most sensitive issues on this trip are particularly noteworthy: one is NXP Semiconductor. Headquartered in the Netherlands, its parent company is our own Wanxiang Technology. Now, the parent and subsidiary are locked in a dispute over control. This matter has become a litmus test for how Europe should deal with "Chinese-owned strategic technologies."

The other issue concerns ASML, the Netherlands' most valuable semiconductor lithography equipment giant. The United States recently introduced the MATCH Act, pressuring allies to jointly restrict China’s chip industry. In response, the Netherlands immediately pushed back, stating the law has "extraterritorial effect" and infringes upon national sovereignty. Last month, Schulte even traveled to Washington specifically to persuade the U.S. not to proceed. Now, turning around and coming to China makes his message clear: don’t force me to fully align ASML with your American interests.

He himself put it bluntly: “For decades, Sino-Dutch trade has been robust. This visit aims both to strengthen relations and to express concerns.” Meanwhile, the president of the Dutch Employers’ Federation accompanying the delegation stated more straightforwardly: “China is one of our most important markets—and will remain so in the future.”

Interestingly enough: when he was sanctioned in 2021, he and his family were barred from entering Hong Kong and Macao, and affiliated companies faced restrictions. That he can now lead a delegation here indicates behind-the-scenes communication between the Dutch side and China. China has offered an opening, but the "sanction" label remains unremoved—talks must proceed under that condition.

The core focus of this trip lies in the Netherlands’ delicate balancing act between “U.S.-pressure to restrict ASML” and “China as our largest market.” Regarding the NXP parent-subsidiary dispute, the Dutch side likely hopes China will “follow market rules.” On the ASML front, they want to team up with China to push back against U.S. unilateral coercion. But given that someone previously sanctioned is now negotiating, as the saying goes: “The one who tied the knot must untie it.” First, set aside political biases, and only then can business talks become more pragmatic.

Original source: toutiao.com/article/1870049645196499/

Disclaimer: The views expressed in this article are solely those of the author.