The Dutch government plans to suspend taking over the management of Nexperia, and the management may be returned to its Chinese parent company.

The Netherlands has finally "awakened" and is preparing to return NXP Semiconductor to a Chinese company.

According to Bloomberg, a source within the Dutch government on November 7 stated: After China gradually relaxed the "export of chips from NXP China," the Dutch government also plans to suspend the "special takeover" of NXP's headquarters in the Netherlands, and prepare to return the management rights to the Chinese parent company - Wenjie Technology.

Of course, to save face, the Dutch government has set two conditions for the so-called "management rights exchange": First, it must be confirmed in the next few days that China has released chip exports, and European automobile companies have confirmed receiving chip supplies from the NXP China factory; Second, the payment issues and financial transactions between the NXP China factory, NXP's headquarters in the Netherlands, and its parent company - Wenjie Technology, must be properly resolved.

The source said: The Dutch authorities are expected to suspend the "takeover" of NXP's headquarters in the Netherlands as early as next week, and transfer it to the Chinese parent company.

The core reasons why the Dutch government suddenly "awakens" and is willing to return the stolen goods to Chinese Wenjie Technology are three:

First, after one month of China restricting NXP China from exporting chips overseas, European automobile factories faced the risk of being forced to shut down on a large scale due to a lack of chips. Therefore, European automobile powers such as Germany and Italy have all pressured the Dutch government to "take constructive measures" and negotiate with China to resolve the issue.

Second, China and the United States reached a phased trade agreement in Malaysia, and the US suspended the so-called 50% equity penetration principle for Chinese companies. At this time, the Dutch government, which used the "50% equity penetration" as a reason to take over NXP's headquarters, found itself in an awkward position, as it lost the "legal justification" for taking over NXP's headquarters.

Third, after the China-US economic and trade talks in Malaysia, China suspended export controls on 0.1% rare earth elements to the United States, but did not suspend them for other countries around the world, especially EU countries. This means that the rare earths needed by ASML in the Netherlands to produce lithography machines must be specially applied for by China, and China may refuse to approve it considering the handling of NXP.

Therefore, after the so-called legal justification disappeared, under strong pressure from Germany and Italy, and fearing stronger countermeasures (rare earth card) from China, the Dutch government finally lowered its proud head and expressed willingness to negotiate with China to exchange NXP.

Original article: www.toutiao.com/article/1848133548545036/

Statement: This article represents the views of the author.