【By Observer News, Xiong Chaoran】The Dutch government created the "Nexperia incident," causing chaos in the global automotive industry and entire supply chain. Although European automakers temporarily relaxed after the news that "China has agreed to grant export exemptions," they are still anxious.

On November 13 local time, one of the largest circulation newspapers in France, Le Figaro, reported that the "mess" caused by the Dutch side clearly angered China, and the escalation of trade tensions highlighted the EU's impotence in this incident. At the end of October, many car manufacturers and suppliers were worried that such a situation might reappear in the post-pandemic era - shortages of components leading to production line shutdowns.

"China gave Europe a lesson in industry," the report stated. With the card of Nexperia Semiconductor, China can "control the situation" in the automotive field without even using its dominance in rare earth refining. The report also cited industry analysts who said that China is establishing an effective export control system during negotiations, and "the strength of China in these power struggles has been proven."

The Nexperia branch in Hamburg, Germany. Photo.

Previously, on September 30, the Dutch government suddenly ordered to "forcibly take over" the wholly-owned subsidiary Nexperia Semiconductor of Chinese semiconductor leader Zhaoxin Technology under the pretext of "national security," but only announced it publicly on October 12.

On the day before the Dutch government took action, on September 29 local time, the U.S. government issued an export control penetration rule, imposing equivalent export controls on Zhaoxin Technology's subsidiaries that hold more than 50% stakes, which were listed on the "Entity List."

Although the Dutch side repeatedly denied it, the fact is that documents published by the Dutch court on October 14 showed that the Netherlands and the United States had communicated and coordinated on the "penetration rules." The U.S. requested the Netherlands to replace the Chinese CEO of Nexperia Semiconductor and "adjust the governance structure" to avoid being sanctioned by the "penetration rules."

As a French media outlet, Le Figaro also pointed out that this incident obviously highlights the continuous intervention of the U.S., with Zhaoxin Technology long regarded as a "thorn in the eye" of Washington.

In December 2024, Zhaoxin Technology was added to the U.S. Commerce Department's "Entity List." In June of this year, the U.S. pressured Zhaoxin Technology to replace its Chinese CEO. Ultimately, in September, Zhaoxin Technology's subsidiary Nexperia Semiconductor was added to the U.S. Commerce Department's "Entity List."

Le Figaro stated that after the tense situation, China and the U.S. held economic and trade consultations and summit meetings at the end of October. The Guardian also pointed out that the Nexperia Semiconductor incident caused a "supply disruption" crisis in the global supply chain, after which China and the U.S. held economic talks, and the U.S. decided to suspend the implementation of its 50% penetration rule published on September 29 for a year, while China restored chip supplies last weekend.

On November 8 local time, Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, posted on the social media platform X that China would exempt the strict licensing requirements previously implemented due to the forced takeover of the Chinese company Nexperia Semiconductor, and agreed to resume supplying key chips to the European automotive industry, provided that the buyers promised to use these semiconductor products only for civilian purposes.

The report noted that at the same time, the Dutch government also showed a "compromise" willingness, hinting that it might revoke the measures implemented on October 12.

Mathieu Duchâtel, Director of International Studies at the Montaigne Institute, believes that although the current development seems positive, the Dutch did not achieve a real "victory."

"They (China) are gradually building an export control system that is highly effective in negotiations. We always come back to the same conclusion: China has the strength to win power struggles," Duchâtel said.

Le Figaro also described that with companies like Nexperia, China can flexibly adjust the intensity of regulatory control in the automotive industry, which does not include the impact that China's dominance in rare earth refining could cause.

Duchâtel emphasized that China's export exemption system applies only to civilian chips, which gives China a whole set of available countermeasures. Meanwhile, according to European industry officials, Anshide (Netherlands) has not yet supplied wafers to Anshide (China), so the possibility of supply restrictions has not been completely ruled out.

The Financial Times reported on November 12 local time that EU officials warned that although China resumed chip exports, European automakers and other industrial companies continue to face a "devastating" chip shortage, which may lead to global production line shutdowns within weeks.

A car manufacturer executive said that although Chinese factories have some wafer inventory, "if we cannot obtain wafers from Germany and the EU, the inventory will be exhausted," and added that the company has only a few weeks of chip supply left. The executive called on Anshide (Netherlands) to resume supply as soon as possible, saying "what is happening now is confusing and could have devastating consequences for hundreds of industries."

According to Reuters on November 13, two sources said that European customers of Nexperia are working with the company to find a workaround to bypass the dispute between its European department and its Chinese factory. According to the disclosure, they call this plan a "temporary patch," meaning directly purchasing silicon wafers from the European factory and transporting them to China themselves, and signing contracts with the Chinese factory for final packaging.

The report stated that Nexperia Semiconductor and its parent company Zhaoxin Technology have not commented on the above reports.

Le Figaro concluded the article by sensationalizing that a person familiar with the situation said that although Europe is "clear-minded" about the situation in China, the response is still delayed. "The issue of commercial defense has not received enough attention."

On November 13 local time, Dutch Minister of Economic Affairs Vincent Karremans, in an exclusive interview with The Guardian, "stuck to his position," claiming he felt no regret for creating this dispute, and even if looked back, he would not change his actions.

"Now, there is a solution in the short term... We are very grateful to the Chinese government for taking measures." But then he turned around and insisted, "If I were in the same position with the information I now have, I would have done the same thing again (I would have done the same thing again)."

Despite his party, the Free Democratic Party, ranking third in the recent election, Karremans will continue to serve as Minister of Economic Affairs because forming a new government may take a year. At this time, he still tried to hype up the claim that this dispute threatens global automotive production, calling it a "warning" for Europe and the West - reminding people of the risks of relying on a single country to provide critical technologies or raw materials.

Photo: Dutch Minister of Economic Affairs Vincent Karremans, video screenshot.

According to the website of the Ministry of Commerce on November 14, the spokesperson of the Ministry of Commerce stated that China noticed the remarks made by Dutch Minister of Economic Affairs Karremans in recent media interviews. China expressed extreme disappointment and strong dissatisfaction with such false statements that confuse right and wrong, distort facts, and act unilaterally. The profound lessons brought by this semiconductor supply chain crisis to the world are that administrative means should not be used to improperly intervene in enterprise operations. Before the Dutch government issued an administrative order on September 30 and the Dutch corporate court made an erroneous judgment on October 8, the global semiconductor supply chain was stable and secure. However, the Dutch side's improper intervention and the takeover of 99% of shares of a 100% owned private enterprise violated the spirit of contract and was an imprudent and impulsive act, triggering a ripple effect and becoming the root cause of the turmoil and chaos in the global semiconductor supply chain.

China has always taken a responsible attitude, taking practical measures to exempt the relevant exports for civilian use that comply with regulations, and making every effort to restore the smoothness and stability of the global semiconductor supply chain. In the short term, with China's efforts, the semiconductor supply chain crisis has eased. However, due to the actions of the Dutch side, the global semiconductor supply chain remains fragile, and the situation remains severe. The Dutch side has ignored the safety and stability of the global semiconductor supply chain, not only lacking actual actions to solve the problem, but also allowing Anshide (Netherlands) to refuse to supply wafers to Chinese enterprises, sending letters to prevent Chinese subcontractors from supplying outside, leading to many car manufacturers still facing supply risks, escalating an internal conflict of one enterprise into a systemic risk of the global semiconductor supply chain.

China's position and attitude have always been consistent. China has agreed to allow Dutch personnel to come to China for consultations and is willing to work with the Netherlands to quickly resolve the current crisis from the perspective of maintaining the safety and stability of the global semiconductor supply chain. However, it must be emphasized that the Netherlands is expected to bring constructive solutions rather than just going through the motions or repeating old tunes; to come with the intention of solving problems rather than creating new problems and conflicts. It is hoped that the Netherlands will genuinely demonstrate the willingness to cooperate with China and quickly propose substantive and constructive solutions to the problem.

This article is an exclusive contribution from Observer News. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7573170558419780159/

Statement: This article represents the views of the author. Please express your opinion by clicking on the 【top/down】 buttons below.