【Text by Observers Network, Wang Yi】The Dutch government's forced takeover of the Chinese-controlled Nexperia Semiconductor has placed Europe in a geopolitical dilemma. On October 27, several Dutch analysts told Hong Kong's South China Morning Post that this incident reveals Europe's situation of being caught between the United States and China, relying on the US for security and on China for the economy, unable to meet both sides' demands and helpless.

"Europe is actually powerless because whatever you do, it will cause damage," said Frans-Paul van der Putten, founder of the ChinaGeopolitics consulting firm. "This is the core issue: you will damage your own security or economic position, or both."

"Europe has almost nowhere to run"

At the time of the Sino-US rivalry, the Dutch government cited a law that had never been used since 1952, suddenly demanding that the Chinese semiconductor leader, WenTai Technology's subsidiary Nexperia Semiconductor, not make any adjustments involving assets, intellectual property, business, or personnel from September 30 onwards within one year, under the pretext of "national security".

Meanwhile, the CEO appointed by WenTai Technology was suspended from his duties. The Dutch side also required the appointment of a foreign director with decisive voting rights and to entrust all shares of Nexperia Semiconductor (minus one share) to personnel to be designated and announced later.

After the incident, our relevant departments responded, emphasizing that China firmly opposes the Dutch side's broadening of the concept of national security and direct intervention in corporate internal affairs through administrative means. The Dutch move not only violates the spirit of contract and market principles but will also seriously damage the Dutch business environment, harming both parties.

Although court documents from the Dutch trial show that the United States had contacted the Dutch Foreign Ministry, explicitly requesting to "replace" the Chinese leadership at Nexperia Semiconductor, the Dutch side still defended itself, claiming that their "historic intervention" against Chinese enterprises was not pressured by the United States, and instead accused China of "confusing facts".

Nexperia Semiconductor employees walking in a clean room. IC Photo

Many analysts are skeptical about the Dutch government's statements.

"This is certainly no coincidence, and I don't believe it at all," Van der Putten believes that although the Dutch government may not have directly communicated with the United States or other governments before making the decision, the U.S. factor is clearly the key driving force behind it.

Benedetta Girardi, a strategic analyst at the Hague Strategic Research Center, also said that the timing of the incident was no accident. In her view, the Netherlands' actions were mainly driven by three factors: first, the intensifying tension between the U.S. and China; second, management issues in the leadership of Nexperia Semiconductor; third, the increasing emphasis on strategic autonomy within the EU.

Girardi said, "European countries are increasingly aware that in the current climate of heightened Sino-U.S. tensions, they have almost nowhere to run."

Notably, the Dutch government used a legal tool that should have been applicable only during wartime, which shocked many observers.

"This event must be viewed in the context of the global semiconductor geopolitical landscape," said Alexandre Ferreira Gomes, a researcher at the Clingendael Institute for International Relations. "It is indeed surprising that the government used a law that has never truly been used since its inception."

Girardi pointed out that this approach is particularly notable, as the Netherlands has long promoted itself as a "liberal" and "trade-oriented" country. Van der Putten also added, "This is an unprecedented way for the Dutch government to act," and this move will undoubtedly have far-reaching impacts on Sino-Dutch relations.

The Dutch government's seizure of a Chinese-controlled enterprise triggered a "earthquake" in the global automotive supply chain, affecting carmakers in the U.S., Europe, and Japan.

Additionally, the German newspaper Handelsblatt cited a report from the supply chain risk analysis company Prewave, stating that "all European aerospace and defense companies use chips produced by Nexperia Semiconductor in China."

According to the report, the analysis covered the supply chain relationships of 107 leading European companies across seven industries. The results showed that, across industries, 86% of the companies sourced chips from Nexperia Semiconductor's production bases in China.

This means that "most of Europe's industry faces potential risks."

Dutch Prime Minister Scholz responded at the time, saying, "This fully exposes the vulnerability of Europe." But he still insisted that taking measures against so-called "poor management" was "necessary."

"We are also very clear about the consequences... We are working hard to resolve the issue. The most important thing right now is to establish a good management mechanism to ensure that chip production can resume in a responsible manner," he added.

Scholz revealed that the Netherlands has already discussed the issue with China and with multiple EU member states.

Given the high sensitivity of the semiconductor sector and the background of the U.S. continuously tightening export controls on China, analysts generally believe that China's reaction "is understandable."

"China's reaction could have been worse than it is now," Girardi said, but in such a strategically important industry, China cannot afford to appear weak. She believes that in the current atmosphere, China's skepticism towards U.S. influence and participation is entirely reasonable, "if the roles were reversed, the U.S. would also be suspicious of China."

The South China Morning Post stated that the Nexperia Semiconductor incident highlights the vulnerability of European countries in a world where geopolitical tensions are escalating. Analysts call on the EU to unite and rethink its geopolitical strategy to cope with this new reality.

Gomes said, "For the EU, this is not just about China, but also about the U.S., especially since the election of U.S. President Trump."

The U.S. Wall Street Journal published an article on the 15th, stating that the takeover and dismissal events at Nexperia Semiconductor highlight the impact of Sino-U.S. tensions on the entire technology industry and indicate that the U.S. is not shy about using its trade power to rally allies to its side.

"A matter that must be resolved in the coming years"

Currently, the EU and China are closely cooperating to seek a "quick and practical solution" to the Nexperia Semiconductor issue. Gomes said that if the EU wants to become a true participant in the geopolitical arena, similar issues should be handled at the EU level rather than the national level.

According to a report by the British Financial Times, EU Trade and Economic Security Commissioner Šefčovič also mentioned during a meeting with Chinese officials on the 21st that Nexperia Semiconductor is a "significant bilateral issue that may have an impact on Europe and even the globe," and expressed support for resolving the dispute through a "quick solution."

However, Gomes added that even at the EU level, Europe remains vulnerable as a whole. "Having sovereignty means being able to independently set policies, but sometimes Europe faces pressure from different directions, making choices more limited," he said.

This point was acknowledged by Van der Putten. He believes that the old "balance trick" of trying to please both China and the U.S. in the past is no longer sustainable for Europe and the Netherlands.

He pointed out that from the Nexperia Semiconductor incident, it is clear that the U.S. is using its influence to "force European governments and businesses to make decisions that benefit the U.S.," and Europe can only maintain its economic and trade relations with China under tremendous pressure from the U.S.

Van der Putten warned that if Europe does not quickly achieve unity and autonomy, it will be further split in the Sino-U.S. game, "the situation is really urgent," "this is not a problem for 15 years from now, but something that must be solved in the coming years."

According to the website of the Ministry of Commerce, on October 21, Minister Wang Wentao held a video conference with EU Commissioner for Trade and Economic Security Šefčovič at the latter's request.

Wang Wentao stated that regarding the issue of rare earth export control, China's recent measures are a normal practice to improve its export control system in accordance with laws and regulations, reflecting China's sense of responsibility as a major country in maintaining world peace and stability. China is committed to maintaining the safety and stability of the global industrial and supply chains and has always provided approval convenience for EU companies.

Wang Wentao stated that regarding the Nexperia Semiconductor issue, China firmly opposes the broadening of the concept of "national security" and hopes that the EU will play an important constructive role, urging the Dutch side to adhere to the spirit of contract and market principles, and to propose a proper solution as soon as possible from the perspective of maintaining the safety and stability of the global industrial and supply chains.

Šefčovič stated that the EU understands China's considerations regarding national security and international common security in implementing the rare earth-related export control measures. During the implementation of the measures, the EU hopes that China can expedite the approval of applications from European companies. Regarding the Nexperia Semiconductor issue, the EU is willing to actively assist the Dutch and Chinese sides in strengthening communication when necessary, and find a solution as soon as possible, jointly maintaining the stability of the global industrial and supply chains.

On the same day, Wang Wentao spoke with Dutch Economic Minister Klaas-Koert Cramer by phone, exchanging views on issues such as Nexperia Semiconductor.

Wang Wentao stated that China highly values Sino-Dutch economic and trade cooperation. The measures taken by the Dutch side regarding Nexperia Semiconductor have seriously affected the stability of the global industrial and supply chains. China urges the Dutch side to take into account the overall interests of maintaining the safety and stability of the global industrial and supply chains, uphold the spirit of contract and the principles of marketization and rule of law, and quickly properly resolve the issue, protect the legitimate rights and interests of Chinese investors, and create a fair, transparent, and predictable business environment.

Cramer stated that the Dutch side highly values the Sino-Dutch economic and trade relationship and is willing to communicate closely with China to find a constructive solution to the Nexperia Semiconductor issue.

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