【Text by Observer Net, Xiong Chaoran】The Dutch government has caused the "Nexperia incident," making the global supply chain extremely vulnerable, and the mess remains unsolved to this day, yet it still shows no sign of remorse.

On November 13 local time, the UK's The Guardian described Dutch Minister of Economic Affairs Vincent Karremans as the "central figure" in this controversy storm, and published an exclusive interview with him. In the interview, he claimed that the dispute between the EU and China over Nexperia and its key automotive-grade chip supplies has made global leaders realize their dependence on China.

Although his party, the People's Party for Freedom and Democracy (VVD), came third in last month's election, Karremans will continue to serve as Minister of Economic Affairs, as forming a new government may take a year. At this time, he is still not forgetting to hype up and spread the claim that this dispute threatens global car production, calling it a "warning for Europe and the West" — reminding people of the risks of relying on a single country for critical technologies or raw materials.

"The outside world is very interested in this matter; it's like an economic thriller." It was clearly the Dutch side who "caused the problem," but he still refuses to admit any fault, claiming he would not change his actions even if looking back now.

"There is a short-term solution now... we are very grateful for the measures taken by the Chinese government." However, he then said: "If I were in the same position with the information I have now, I would have done the same thing again (I would have done the same thing again)."

Dutch Minister of Economic Affairs Vincent Karremans, The Guardian

Through this interview with The Guardian, Karremans seems to have found a "channel to speak out," continuously disclosing so-called details about the origin and development of the dispute, which is a first since the dispute broke out. In the interview, he recalled his high-level contacts with German ministers, automotive industry insiders, and U.S. officials.

Previously, the Dutch government suddenly ordered the "forced takeover" of Nexperia, a subsidiary of China's leading semiconductor company, Wanxiang Technology, on September 30, citing "national security," but only publicly announced it on October 12.

On the day before the Dutch government took action, on September 29 local time, the U.S. government issued a new export control rule, imposing equivalent export controls on the subsidiary of Wanxiang Technology listed on the "Entity List" with more than 50% ownership.

Karremans insisted that the Dutch move had nothing to do with the U.S. adding Nexperia to the "Entity List" on September 29. "We were absolutely not pressured or coerced by the Americans." But he also said, "What we heard from the Americans was that they were about to face a government shutdown, and they wanted to ensure that Nexperia was added to the list."

However, in fact, a court document released by the Netherlands on October 14 showed that the Netherlands and the United States had communicated and coordinated on the "penetration rules," with the U.S. requesting the Netherlands to replace the Chinese CEO of Nexperia and "adjust the governance structure" to avoid being subject to the "penetration rules."

The Guardian also reported that as early as 2023, the U.S. had informed the Netherlands that it was considering adding Wanxiang Technology to a "list of associated parties" that could pose a threat to national security, causing concerns about the company's ability to export to the U.S. in the future. "These restrictions are very strict, so we must cooperate with the governments of the U.S. and China and the Chinese shareholders of Nexperia to seek solutions," Karremans said.

Facing The Guardian, Karremans continued to hype up false accusations against the Chinese CEO of Nexperia, claiming that "intelligence" indicated that Nexperia was transferring some of its operations in Hamburg to China.

He insisted that if Wanxiang Technology truly transferred its semiconductor wafer production lines to China, the mutual dependency between Europe and China would turn into complete reliance, which would be "very dangerous" for Europe.

When asked about the rumor of plans to transfer part of the Hamburg production line to China, Wanxiang Technology responded that the company is advancing an investment plan in Germany, which is expected to create 150 new jobs, including 100 R&D positions and 50 production positions.

A spokesperson said, "Wanxiang Technology's $200 million investment plan for the Hamburg wafer manufacturing plant, announced in 2024, is progressing steadily... As new production lines are gradually put into operation, we originally planned to continue expanding our team, but this plan has been put on hold due to the intervention of the Dutch government."

Previously, Wanxiang Technology's spokesperson also stated that as the parent company of Nexperia, Wanxiang Technology is urging the Dutch government to change its stance and eliminate the false accusations regarding its technology theft.

According to reports, after the incident involving Nexperia caused a sharp deterioration in relations with China, Karremans had communicated with German Federal Minister of Economics and Climate Action Kathrin Rette. "She supported our actions and was very concerned about the impact on the automotive industry," he said.

"We did not intend to make this public. We hoped to resolve this issue quickly and discreetly," Karremans said.

The Guardian pointed out that the Nexperia incident led to a "supply disruption" crisis in the global supply chain, and later, the U.S. and China held trade talks, with the U.S. deciding to suspend implementing 50% of its September 29 export control penetration rules for one year, while China resumed chip supplies last weekend.

However, the Netherlands has not yet withdrawn its "takeover" of Nexperia, and Karremans hinted that at least until the first batch of chips arrive in Europe, there will be no new developments.

"We maintain direct contact with the German automotive industry and other automakers, as well as customers of Nexperia. They will notify us once they receive the chips. Once the supply is restored and we are sure that the supply can be sustained, then... the Dutch government will take appropriate steps to resolve the matter."

An employee walks past a clean room at Nexperia. Visual China

On November 4, the Ministry of Commerce spokesperson stated that Nexperia (Netherlands) announced on October 26 that it had stopped supplying wafers to Nexperia (China), causing the latter to be unable to produce normally, resulting in turbulence and chaos in the global semiconductor supply chain. The Dutch side should bear full responsibility for this.

The spokesperson pointed out that the Chinese side, with a responsible attitude toward the stability and security of the global semiconductor supply chain, announced on November 1 that it would exempt eligible exports and strive to promote the resumption of supply from Nexperia (China). However, the Dutch side continues to act unilaterally and has not taken any practical steps to solve the problem, which will inevitably deepen the negative impact on the global semiconductor supply chain. This is something the Chinese side and the global industry does not want to see.

On November 11, Minister of Commerce Wang Wenbao held a video meeting with German Federal Minister of Economics and Climate Action Kathrin Rette upon request.

Wang reiterated that ensuring the long-term stability of the global semiconductor supply chain requires the Dutch side to demonstrate a constructive attitude and concrete actions. He hopes that the German side will play an active role in urging the Dutch government to take concrete actions as soon as possible, correct its mistakes, revoke the relevant measures, and promote the resolution of the issue.

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