【By Observer Net, Qi Qian】
On the afternoon of November 4, the Chinese Ministry of Commerce responded to issues related to Nexperia, stating that the Dutch government has not shown a constructive attitude and actions regarding the current turbulence and chaos in the global semiconductor supply chain, and should bear full responsibility.
The latest statement from China immediately attracted high attention from Western media. Various media outlets reported with headlines such as "China criticizes the Netherlands".
Among them, Associated Press and Bloomberg published articles stating that China's statement means the "Nexperia deadlock continues to escalate". The UK's The Guardian believes that the normal production of American and European car factories continues to face threats. Reuters mentioned on the same day that China's "strong wording" statement further intensified the concerns of Western car manufacturers, who previously thought that the situation had shown "positive signals".
Reuters stated that on the same day, Antonio Filosa, CEO of French automaker Stellantis, said at a Paris industry meeting that the fragility of the European supply chain puts it at a disadvantage compared to Chinese competitors.
"Our current system means there is zero industry autonomy," Filosa pointed out, adding, "if you don't believe me, look at the current Nexperia chip crisis and the painful experience we had in April with the rare earth crisis."
Ola Källenius, CEO of German automaker Mercedes-Benz, told Reuters on the same day that their company currently has sufficient chips, but also said, "We will closely monitor the outcome of the Sino-US agreement."
Antonio Filosa, CEO of Stellantis, photo
According to reports, on the same day, the European Commission issued a statement saying that China and the EU have made some progress on the Nexperia issue, with industry signs indicating that China has contacted EU companies to resume part of the chip supply, "avoiding the worst case and buying time and space to find a lasting solution". The statement mentioned that the Commission will inform the countries on the 5th and request member states to submit assessment reports by the 7th.
A spokesperson from the Dutch Ministry of Economic Affairs responded, stating that negotiations between China and the Netherlands are still ongoing, "we will continue to maintain contact with China and international partners to seek a constructive solution beneficial to Nexperia and our economy."
Reuters mentioned that China's latest statement contradicts the statements of the EU and the Netherlands, which further intensifies the concerns of car manufacturers urgently seeking chip supplies from Nexperia. They previously thought that positive signals had emerged from the negotiations between the EU, the Netherlands, and China.
Chips produced by Nexperia are crucial for the global automotive industry, company website
Recently, China's leading semiconductor enterprise, Joyoung Technology, has encountered significant regulatory challenges, with its core asset Nexperia, headquartered in the Netherlands, having its assets, intellectual property, etc., frozen for one year since September 30 due to instructions from the Dutch government.
The Netherlands caused a big mess: seizing a Chinese-controlled enterprise led to supply interruptions, causing a "earthquake" in the global automotive supply chain, affecting automakers in the US, Europe, and Japan.
The Wall Street Journal cited data indicating that Nexperia's revenue last year was approximately $2 billion, with about 60% coming from automotive applications. The company holds a significant market share in basic chips required for hundreds of automotive components. Industry executives and analysts say this makes it complex for American and European automakers to find sufficient alternative supplies.
Multiple Chinese departments responded, emphasizing that China firmly opposes the Dutch government's broadening of the concept of national security, using administrative measures to directly interfere in internal corporate affairs. This action by the Dutch government not only violates the spirit of contracts and market principles but will also severely damage the business environment in the Netherlands, harming both sides.
From the timeline, these operations are hard to avoid suspicion of being a carefully planned "plunder". On October 14, court documents released by the Amsterdam Court of Appeal showed that as early as June this year, U.S. officials had already made their position clear to the Netherlands - if Nexperia wanted to get an exemption from the new changes in the U.S. "Entity List", its Chinese CEO "must be replaced".
For weeks, automobile manufacturers around the world have been preparing for reduced production or complete shutdowns.
In recent days, European automakers and suppliers have rushed to apply for export exemptions for Nexperia chips, promising to pay in RMB, or seeking alternative suppliers. On the 3rd, German automotive parts supplier and global automotive parts giant ZF (AF) stated that they were urgently seeking export restrictions exemptions. The company had earlier indicated that if the supply crisis worsened, they would prepare to put employees on unpaid leave.
The spokesperson for the Ministry of Commerce on November 1 stated that China will consider the actual situation of enterprises and grant exemptions for exports that meet the conditions.
This move was generally interpreted by foreign media as "China releasing a signal of relaxing export controls". However, according to Reuters' report on the 4th, it obtained a customer letter dated "November 3", which shows that Nexperia (Netherlands) informed affected customers that it could not determine whether the chip supply from its Dongguan factory in China could be restored, or when it would be restored.
According to the Ministry of Commerce website, the spokesperson for the Ministry of Commerce stated on the 4th that the Dutch government issued an administrative order on September 30, improperly interfering with internal affairs of Nexperia, and the Dutch court later made a wrong ruling to deprive Chinese enterprises of equity. This seriously infringed upon the legitimate rights and interests of Chinese enterprises. After that, the Dutch government did not show a constructive attitude and actions, and instead escalated the global supply chain crisis. Nexperia (Netherlands) announced on October 26 that it would stop supplying wafers to Nexperia (China), causing the latter to be unable to produce normally, resulting in turbulence and chaos in the global semiconductor supply chain. For this, the Dutch side should bear full responsibility.
Considering the responsible attitude towards the stability and safety of the global semiconductor supply chain, China announced on November 1 that it would grant exemptions for exports that meet the conditions, and strive to promote the resumption of supply from Nexperia (China). However, the Dutch side continued to act unilaterally without any practical actions to solve the problem, which will inevitably deepen the negative impact on the global semiconductor supply chain. This is something that China and the global industry does not want to see.
China hopes that the Dutch side will take a responsible attitude and work in the direction of China, considering the overall situation of Sino-Dutch and Sino-EU economic and trade relations and the stability and safety of the supply chain. Stop interfering in internal corporate affairs and find a constructive solution to the Nexperia issue. At the same time, China will firmly safeguard the legitimate rights and interests of enterprises and strive to stabilize the stable and smooth operation of the global semiconductor supply chain.
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