【Text by Observers Network, Liu Bai】The Dutch government has been aggressively seizing assets of Chinese enterprises, plunging the global automotive industry into a new chip supply crisis.

Reuters reported on October 30 that global automakers are urgently seeking chips and verifying inventory with suppliers to cope with the supply chain crisis triggered by the Dutch government's forced takeover of Nexperia, which is now impacting the production of the entire automotive industry. Industry insiders have stated that both companies and governments will eventually have to sit down and talk with China.

The European Automobile Manufacturers Association warned on the 29th that the chip shortage related to Nexperia will soon disrupt the production plans of car factories. The association said that the industry is currently consuming reserve inventories, but supplies are rapidly decreasing, and it will take months for alternative suppliers to build up stock.

Automakers such as Nissan and Mercedes-Benz are trying to deal with the uncertain supply situation. Nissan said its chip inventory would only last until the first week of November. A Honda spokesperson said that the company had suspended production at one of its Mexican factories on the 28th and started adjusting production plans in the United States and Canada.

A Brazilian government official said that if the crisis continues, some automobile manufacturers in Brazil may be forced to shut down within two to three weeks.

Nexperia chips are widely used in automotive components, making this supply crisis the latest challenge for the automotive industry following U.S. tariffs and China's rare earth control measures.

Scene inside the Volkswagen factory production line in Zwickau, Saxony, Germany in autumn 2025. IC Photo

"This is a big issue," said Guillaume Cattier, Nissan's Chief Performance Officer, told reporters at the Tokyo Japan Mobility Show, "we currently cannot fully grasp the situation."

Cattier said that regarding chip supply, Nissan is temporarily safe before the first week of November.

He said that even though automakers have learned from the chip shortage during the pandemic and have stockpiled inventories, they still have to rely on various suppliers, including small ones. Although they can understand the situation of the largest "tier one" suppliers, the further down the supply chain, the more difficult it is to understand the situation.

Mark Wintzheimer, CEO of U.S. electric vehicle manufacturer Lucid Group, said that the company's engineering team has already started looking for alternative sources of supply, and the impact of the crisis on production plans has been buffered. "The situation is moving in the right direction."

A General Motors spokesperson said the company is handling the issue properly, and factory output has not been affected.

"Without a doubt, we are searching globally for alternatives," said Ola Kaellenius, CEO of Mercedes-Benz, adding that the company can ensure short-term supply. He pointed out that this crisis is different from the previous chip shortage, as its root cause is political, and it needs to be resolved through political means.

"A modern high-tech car almost includes parts from all over the world," he emphasized, adding that this also reminds people that the globalization of supply chains makes manufacturers vulnerable to the impact of global trade tensions.

Klaus Schmitz, partner at the American consulting firm Arthur D. Little, noted that automakers are considering suspending production or using alternative parts to get through this shortage.

But he also said that ultimately, companies and governments will have to sit down and negotiate with China.

"Companies will definitely negotiate with China now, and governments are also negotiating with China, especially the United States," Schmitz said. "The actual impact remains to be seen, but this could be a quite serious situation."

Recently, Nexperia, the core asset of China's leading semiconductor company Joyy Technology based in the Netherlands, had its assets, intellectual property, and other adjustments frozen for one year starting September 30 due to a directive from the Dutch government.

What the Dutch government found was an old Cold War relic, the "Commodity Supply Act" dating back to 1952, which had never been used before. The law was originally intended to ensure the continuous supply of key strategic materials in extreme emergencies such as war, but now it is being used against Chinese enterprises, which is truly shocking.

On the day before the Dutch government took action, the U.S. government issued a penetrating export control rule on September 29, imposing the same export controls on subsidiaries that are listed on the "Entity List" and hold more than 50% shares. Joyy Technology is among those on the list.

Afterward, media reports revealed that after the Dutch government intervened, the Dongguan factory of Nexperia was restricted from shipping products after the National Day and Mid-Autumn Festival holidays. Joyy Technology stated that the China region was "independent self-rescue," connecting the domestic supply chain. However, "Chinaization" of the supply chain is not easy, involving challenges such as technology transfer and customer certification.

German media previously reported that due to the shortage of semiconductor supply, Volkswagen is preparing to suspend the production of certain important models, and it is expected that the production of the Golf model at the Wolfsburg headquarters will be first affected, followed by the Tiguan model shortly after.

"We are very concerned about the situation faced by German companies and maintain contact with the affected parties," said Luisa-Maria Spörl, spokesperson for the German Ministry of Economics on the 27th, "we are worried about potential supply chain difficulties and are working with China to promote the interests of the German economy."

Currently, the EU is developing emergency plans, including increasing local production of minerals, diversifying supplier networks, and reusing certain materials, while planning to establish joint procurement and strategic reserve centers.

However, European officials admitted that with the continued deterioration of Sino-European relations, there is no quick solution.

Several Dutch analysts told the South China Morning Post that this incident exposed Europe's position between the U.S. and China, relying on the U.S. for security and depending on China for the economy, unable to meet the demands of both sides and powerless.

"Europe is actually powerless because whatever you do, it will cause damage," said Frans-Paul van der Putten, founder of the Dutch consulting firm ChinaGeopolitics.

According to the website of the Ministry of Commerce, on October 21, Minister Wang Wentao held a video meeting with Commissioner for Trade and Economic Security of the European Commission, Jozef Skowron, on the occasion of an invitation, and exchanged in-depth views on major Sino-EU economic and trade topics such as export controls and the EU's anti-subsidy investigation against Chinese electric vehicles.

Wang Wentao emphasized that regarding the Nexperia issue, China firmly opposes the generalization of the concept of "national security" and hopes the EU will play an important constructive role, urging the Dutch government to uphold the spirit of contract and market principles, and propose a proper solution as soon as possible from the perspective of maintaining the safety and stability of the global supply chain.

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