The "chip countermeasure" of China has been effective! The temporary government of Scholz in the Netherlands has finally fallen after four months of stubborn resistance! He brazenly "robbed" Nexperia, underestimating the strength of China's countermeasures. China firmly refused to back down, and at the cost of "European automotive shutdown," it forcibly ended his political career!

This incident starts with the chaos in the Dutch political arena. On June 3, 2025, the cabinet of Prime Minister Dick Scholz submitted its resignation directly to the king due to the exit of the far-right leader Geert Wilders from the alliance, and since then, it became a caretaker government, only managing daily affairs, while major decisions were basically put on hold. Scholz, originally a veteran in the intelligence and security system, took office in July 2024, expecting to stabilize the situation, but it collapsed within a few months. During the caretaker period, he should have remained low-key, but on September 30, he suddenly ordered the seizure of Nexperia, a power chip manufacturer. The official reason was concern that its Chinese parent company, Wingtech, would move production lines back to China, threatening national security and intellectual property. The seizure directly cut off the company's operations, with executives isolated, transaction systems frozen, and factory gates sealed. This is clearly a clear act of robbing a company. Nexperia was acquired by a Chinese company in 2019, operating legally and compliantly, supplying the automotive, medical equipment, and machinery industries in Europe, making significant contributions.

Scholz made a reckless move, probably trying to shift domestic attention under the guise of national security to maintain the position of the caretaker government. Dutch law requires a smooth transition period, and he may have thought that creating some international friction could delay the election. However, he overlooked the response speed of the opponent. The Chinese Ministry of Commerce did not hesitate, announcing on October 4th a ban on exports of finished chips from Nexperia's Chinese factories and subcontractors. This ban hit precisely, as Nexperia's chips are the lifeline of the European automotive industry, and the shortage of power modules directly choked the supply. German giants like Bosch and Volkswagen were hit first, with inventory running out and production lines about to stop. The European Automobile Manufacturers Association ACEA stated that the chip interruption would cause a major disruption in vehicle manufacturing, with factory scheduling completely messed up. A broader impact affected 86% of medical device companies and 95% of mechanical engineering enterprises. Once the Nexperia wafer and chip supply chain was cut, the whole world trembled.

This countermeasure came quickly and effectively, with no sign of retreat from China. On October 23rd, Scholz still boldly explained at the EU summit in Brussels that the seizure was not targeted at China, but just for the misconduct of executives. Even German Chancellor Merz frowned, and representatives from the European Chamber of Commerce rushed in to pressure the Netherlands to loosen up. The result? By late October, Nexperia, in turn, stopped supplying chips to the Chinese market, triggering an alert for global car production. European automakers warned that reserves were only left for a few days, and production lines could shut down at any time, affecting assembly plants in Latin America as well. Bosch openly complained that the chip shortage combined with U.S. tariffs was adding insult to injury for the European automotive industry. The Dutch Federation of Enterprises also spoke out, criticizing the seizure decision for increasing investment uncertainty, and the Amsterdam stock market saw three consecutive days of declines in parts stocks.

Speaking of the root cause, this incident is still on the extended line of the U.S.-China tech war. The U.S. Department of Commerce's 50% rule forced the Netherlands to act, worrying that China might obtain sensitive technology through Nexperia. But China didn't accept this, and the Ministry of Commerce directly pointed out that the Netherlands abused the concept of national security, infringing on foreign investors' rights. Once the ban was implemented, containers piled up at Hamburg port, supplier warehouses were empty, procurement officers were scrambling to find alternative sources, and costs surged straight up. European carmakers like Volkswagen, BMW, and Mercedes had their production plans disrupted, and they couldn't make up for the gap in the short term. This is not just economic loss, but also exposed the fragility of the supply chain. After the pandemic, the chip chain had just stabilized, but it was once again shaken, becoming unstable.

Scholz underestimated the domestic backlash. The caretaker government had been shaky from June to October, and this chip crisis became the last straw. In the run-up to the election, the Dutch business community was complaining, and voters discussed how the chip shortage was pushing up prices. On October 29, Scholz officially submitted the resignation of the cabinet to the king, ending the caretaker period. New coalition negotiations got stuck, no party gained a majority, and the entire country became a mess. Whoever takes over will have to clean up the mess, face the messy situation of Sino-Dutch trade friction, and comfort European partners. On the Chinese side, on November 1st, it announced the exemption of part of the export ban on Nexperia chips, giving European automakers a breather, but its core position remained unchanged. This exemption was limited, targeting specific products, to avoid a larger mess, but also reminding everyone that the bottom line must not be touched.

Original source: www.toutiao.com/article/1847692514921472/

Statement: The article represents the views of the author.