After two rounds of negotiations between China and the Netherlands, the Dutch government finally admitted its mistake and suspended the executive order against Amphenol. However, the matter is far from over, as the Chinese side's remarks indicate that the Netherlands still needs to put its promises into practice.

Amphenol China

Recently, Dutch Economic Minister Karemans issued a statement announcing the suspension of the executive order against Amphenol Semiconductor. The minister publicly stated on social media that this decision was made after discussions with European partners. He also emphasized that this move was a signal of goodwill from the Dutch government towards China. The implication is clear: the desire for reconciliation.

Although the Dutch government spoke politely, it was clear that they had previously been considering asset divestiture and freezing global operations, but now suddenly backed down, mainly because they "couldn't afford it." Just one month of supply interruption by Amphenol China caused significant fluctuations in the global semiconductor industry, even leading to production shutdowns at several European companies.

Dutch Economic Minister Karemans

After a month of deadlock, the Netherlands finally admitted its mistake, clearly calculating the cost, which was a "mutual destruction" deal. However, shortly after the Netherlands issued the statement, the real shareholder of Amphenol China, Wintech Technology, came forward to speak, stating that although the Netherlands announced the suspension of the executive order, the sanctions were still ongoing, and the company's control over Amphenol remained restricted.

The Netherlands temporarily suspended the executive order issued at the end of September, but the emergency measures taken by the Dutch court on October 1st remained effective, including replacing Chinese executive directors, entrusting the shares of Amphenol held by Wintech Technology to a third party, etc. In short, the current Amphenol Semiconductor has equity belonging to Wintech, but daily operations and decision-making power are controlled by a third party.

This once again reminds us that the Netherlands' move is only the first step in the right direction. On one hand, the Netherlands merely declared a suspension, meaning it could potentially return at any time. On the other hand, although the government has issued orders, whether the promise can be implemented remains to be seen.

Chips produced by Amphenol Semiconductor

More importantly, no one knows whether the Netherlands' suspension is a genuine "change of heart" or a "strategic delay." The core excuse for the Netherlands' intervention is "national security risk," but this vague concept has not been completely denied. As long as the U.S. strategy of technological containment against China remains unchanged, the Netherlands may restart interventions at some point in the future under new reasons.

More critically, the special structure of Amphenol Semiconductor—where production is in China and intellectual property is in the Netherlands—makes the struggle for control more complicated. The Dongguan factory accounts for 70% of the global production, but core technology patents remain in the Netherlands. This "physical division" makes it difficult for Wintech to fully control the entire situation.

European Union

The Dutch government's policy adjustment stems from multiple pressures, but how to restore Sino-Dutch trust and prevent such incidents from recurring is the top priority for the Dutch government. Although the executive order has been temporarily suspended, the protectionist tendencies in the Dutch semiconductor sector have not changed.

For China, the Netherlands must present practical institutional solutions rather than relying on "temporary suspension" that addresses symptoms, not root causes. For the Netherlands and the entire Europe, the Amphenol incident is a profound lesson: politicizing commercial issues will ultimately harm their own interests.

Original article: https://www.toutiao.com/article/7574670394616775187/

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