Unable to obtain Chinese goods, the Netherlands began to "frame" China. The Chinese side has spoken clearly: the impact on the global chip supply chain will not be attributed to China. The Dutch side finally admitted that this matter still needs China's approval.

Analog Devices

The Dutch government's order brought itself a big trouble. Unexpectedly, China not only did not accept the loss silently but also struck back firmly to defend its rights. After a half-month stalemate, the Dutch side has not yet shown a correct attitude towards solving the problem, but instead, in one letter after another to customers, it has accused China of "disrupting the global semiconductor supply chain."

Analog Devices is nominally a Dutch company, but its owner is China's Wintek Technology. More importantly, over 70% of its global packaging and testing capacity is concentrated in its factory in Dongguan, China. The Dutch government not only froze the company's assets and intellectual property but also directly removed its Chinese CEO and appointed a new management team.

China's restriction on Analog Devices' exports is merely a legal and compliant way to protect its own rights. However, Analog Devices (the Netherlands) did not mention the actions of the Dutch government in its letter, but instead blamed China's countermeasures. Furthermore, the letter implied that without the supervision of the headquarters, the products produced at the Dongguan factory could not guarantee quality.

Production Laboratory

Currently, countless car manufacturers are facing shutdowns due to this issue, and the global chip supply chain has fallen into turmoil. However, the Dutch side refuses to admit its mistakes and instead repeatedly slanders China, trying to make China take on this "hot potato." The Chinese Ministry of Commerce clearly stated that the Netherlands should bear full responsibility for this matter. If the Netherlands had not been too aggressive, the situation would not have reached this point.

Notably, during the 19-day supply interruption, the Chinese subsidiary of Analog Devices demonstrated remarkable resilience and independence. On October 23, it announced the resumption of chip supply to the domestic market, but with two shocking conditions: products will only be sold to domestic customers in China, and all transactions must be settled in RMB.

Workers in the production workshop

The Dutch government thought this move could starve the Chinese subsidiary of Analog Devices, but several wafer factories in China have already expressed their willingness to supply wafers to the Chinese subsidiary of Analog Devices. The Chinese subsidiary of Analog Devices also assured its domestic customers that, although the wafer supply from Europe may be blocked, with the support of domestic companies, it has sufficient inventory and can continue to provide services.

Subsequently, in line with the responsible attitude toward the stability and security of the global semiconductor supply chain, China announced on November 1 that it would exempt exports that meet certain conditions. This move was generally interpreted by foreign media as a signal that China is relaxing export controls, giving global automobile manufacturers on the verge of reduced production or shutdown a "relief."

Prime Minister Scholz of the Netherlands

This is enough to prove that China is not "acting stubbornly" or "retaliating against the Netherlands," but rather defending its legitimate rights and interests. And Analog Devices (the Netherlands) admitted in its letter to customers that it cannot determine whether the chip supply from the Dongguan factory in China can be restored, and when it can be restored. How this issue is finally resolved will ultimately depend on China's approval.

China's demands are very clear. The Chinese Ministry of Commerce has opened the door for dialogue, but emphasized that the Dutch side must stop interfering in internal corporate affairs. This crisis, which was triggered unilaterally by the Dutch government, ultimately needs the Dutch government to show a constructive attitude and action to resolve. Whether China will give the green light depends on the Dutch performance.

Original: https://www.toutiao.com/article/7569132678990103103/

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