The Sino-US trade temporarily paused, and the White House will allow Nexperia to resume chip exports from China to alleviate the risk of global automotive industry supply chain disruptions.
Previously, Nexperia's Netherlands headquarters took a hard stance, not only seizing control of the company, halting the Chinese management team, but also suspending the supply of wafers to Chinese factories, showing an attitude of confronting China at all costs.
However, it didn't anticipate that its biggest ally, the United States, would "change face" first — in order to ease the crisis of European automakers and avoid its own interests being harmed, the US directly reached a consensus with China during the Busan talks, suspending key export control rules, and decisively abandoning the Netherlands as a "vanguard," leaving it in an embarrassing position of isolation.
The US became a "protector of stable supply chains," while the Netherlands was seen as a "culprit" who acted recklessly and was powerless.
The US made its position clear, directly distancing itself — this Nexperia matter was done by the Netherlands, and it had nothing to do with the US!
（Sino-US agree to resume Nexperia chip supply, Dutch companies' applications may be targeted）
On October 31, media outlets such as the Wall Street Journal reported, citing sources, that the White House is expected to announce that Nexperia Semiconductor will resume chip shipments according to the Sino-US trade agreement. The White House is expected to release more details later.
China's statement on November 1 also supported the resumption of supply, proposing to exempt compliance exports based on the actual situation of enterprises, without implementing a "one-size-fits-all" review.
Notably, regarding European companies, especially Dutch companies, China is likely to spend more time on reviews. Essentially, it is a necessary measure to maintain control over the supply chain, as well as a response to the previous improper intervention by the Netherlands.
Nexperia Semiconductor is a subsidiary of China's WenTai Technology, headquartered in the Netherlands. At the end of September, the Netherlands seized control of Nexperia under the pretext of "national security." Subsequently, Nexperia split into two factions — Dutch Nexperia and Chinese Nexperia. The core conflict was the struggle for control. For example, WenTai Technology listed restoring Zhang Xuezhen's position as CEO of Nexperia Semiconductor as a primary condition. No response was received.
Nexperia was forced into a "two-ecosystem" divided structure — Chinese Nexperia controlled packaging and testing, while Dutch Nexperia controlled chip design and wafer production. Meanwhile, as the legal majority shareholder, WenTai Technology has been unable to exercise normal shareholder rights. The Dutch headquarters fell into a "controlling the company seal but not the Chinese workshop" fragmented state. Therefore, although Nexperia Semiconductor's supply has resumed, the core issue of this game has not been resolved, instead falling into a "superficial reconciliation, deep division" stalemate.
All of this can be attributed to the technological rivalry between China and the US.
（The US and the Netherlands each have their own calculations, aiming to block China's technological development and seize opportunities for profit）
In September, the US expanded its export control rules (the 50% ownership rule): if WenTai Technology were placed on a sanctions list, any subsidiary of it that it owned more than 50% would also be subject to the same export restrictions.
If the Netherlands did not cooperate, it could be isolated in the US technology supply chain, or even face diplomatic pressure. Therefore, The Hague urgently activated a 73-year-old "Commodity Supply Act" to take over Nexperia and remove Chinese executives.
On the surface, it was extremely arrogant, but in reality, it was an unavoidable response.
The Netherlands' own greed should not be underestimated either. The Dutch Minister of Economic Affairs, Karremans, previously remained stubborn, claiming that the takeover was to "prevent technology leakage." However, the operation targeting Nexperia was more like a "pig slaughter scheme" in the tech sector. After the company recovered from the brink of bankruptcy and grew, it became the target of joint efforts by the US and the Netherlands to block: the US imposed sanctions, and the Netherlands took advantage of the situation to take over, easily acquiring this chip company that had been heavily invested in.
（China's counterattack, rare earth and chips, directly choke the throats of Western industries）
However, they underestimated China's countermeasures: about 80% of Nexperia products are processed in China, and China controls 90% of the global rare earth separation capacity. In early October, China first banned the export of chips from Nexperia China, and then introduced strict rare earth control regulations. This effectively blocked the production network that Western manufacturing relies on for profitability.
The Nexperia supply chain spans Asia and Europe, ultimately flowing into North American car factories. The disruption of the Nexperia supply chain caused the U.S. domestic automotive industry to face the risk of shutdown. Honda Motors has already stopped production at its North American factories.
In addition, China's rare earth export control measures triggered a "shortage of soil" panic. The U.S. Automotive Policy Council estimated that if the supply were cut off for more than 30 days, the daily loss for the entire U.S. auto industry would reach $230 million.
The pressure on the carmakers quickly backfired on the Dutch and American governments. The U.S. Auto Innovation Alliance urgently called for "resuming supply as soon as possible." But the Netherlands could neither persuade China to restart exports nor force the U.S. to adjust its policies, so it could only watch the crisis affect its allies.
But the U.S. goal is to curb China's semiconductor technology development, not to destroy the global automotive supply chain. After weeks of struggle, the U.S. had no choice but to delay the penetration sanction rules for one year.
But this is far from enough. Those who dare to provoke China must pay the appropriate price. The key to ending this game has never been in their hands, but in China's own.
The Netherlands is the scapegoat handed to the U.S.
（"The Netherlands caused the problem, the U.S. cleaned up the mess" — power narrative in the Nexperia incident）
Dragging the European and American automotive industries into a quagmire, the Netherlands' "obedience" eventually turned into "causing trouble." The resumption of Nexperia chip shipments between China and the U.S. is essentially a typical "cleaning up someone else's mess": the U.S. ally first "stepped on a mine," and then the U.S. stepped in to "put out the fire."
The U.S. logic is: "The Netherlands seized control → China retaliated by halting shipments → global automotive production was disrupted → the U.S. intervened → agreement to resume shipments." The President of the United States packaged himself as a "savior" maintaining global supply chain order. The White House tried to prove to the world that the U.S. is the one steering global stability.
For the U.S. government, resuming Nexperia Semiconductor shipments is both an economic stopgap and a symbolic easing in foreign affairs against the backdrop of tariff battles, supply chain tensions, and high inflation.
The Netherlands originally thought that following the U.S. would gain "security exemptions," but instead became the "main culprit" of the supply chain crisis.
（Interest and risk completely mismatched: the Netherlands has become a temporary tool in the U.S. geopolitical game, used and discarded）
The Netherlands claims that Nexperia has no connection with the U.S., but the resumption of supply was announced by the White House. The U.S. takes credit for the resumption of chip shipments as its "trade negotiation achievement," completely ignoring the costs and public support that the Netherlands paid to align with the U.S. strategy toward China. When it comes to hardship, everyone participates, but when it comes to benefits, the U.S. takes them all.
The White House announcing "resuming shipments" is not to relieve the Netherlands, but to provide leverage for its own interests. The U.S. gained practical benefits through the agreement, such as "fentanyl control" and "relaxing rare earth control," while the Netherlands bore three losses — losing investment confidence, offending the automotive industry, and damaging its "neutral" image.
Once an ally of the U.S. in the technological containment of China, the Netherlands now finds itself in a difficult situation: it cannot independently define "national security," and it struggles to find an economic balance between the U.S. and China. Under the so-called "transatlantic solidarity," the Netherlands lost its ability to make independent decisions. Its "risk prevention" operation of seizing control of the company instead created new risks.
Now, the U.S. casually resumes shipments, while the Netherlands has to face China's accountability and the doubts of global automakers alone. The Netherlands' actions are clearly "sacrificing its own interests to pay for the U.S.'s interests."
If the Netherlands does not immediately correct its interference in Nexperia Semiconductor, it must return the complete management rights of the enterprise to the Chinese shareholders, compensate for its violation of commercial rules, and publicly apologize. Otherwise, the Netherlands will face consequences far beyond expectations, as evidenced by multiple dilemmas.
（The Netherlands' strategic double loss: violating internal principles and provoking a strong enemy）
A series of operations by the Netherlands in interfering with Nexperia Semiconductor are all unconvincing from a legal basis, commercial logic, and real impact.
The Netherlands dismissed CEO Zhang Xuezhen under the pretext of "ensuring technical security," but was refuted by WenTai, which emphasized that "there was no technology theft." Nexperia was a wholly-owned subsidiary of WenTai, and WenTai had legitimate rights to Nexperia's technology, so there was no concept of "stealing one's own technology."
With the U.S. suspending the penetrating rules, the excuse of the Netherlands to "maintain technical security" has completely failed. The actions of the Dutch government have been questioned by domestic public opinion as "unconstitutional operations to bow to the U.S."
At the same time, China will not sit idly by in the face of the Netherlands' provocations. China is not without patience, but will not always indulge the provocateurs. The Netherlands says "not targeting China," but clings tightly to Nexperia, hoping that local companies can "buy at a low price."
The rare earth card will definitely be played, it's just a matter of time. Although China has temporarily delayed the implementation of the "0.1% rule" for one year, it's just a pause, not giving up. It is worth noting that the Netherlands relies on China for more than 80% of its rare earth supplies, and one ASML EUV lithography machine uses more than 10 kilograms of neodymium-iron-boron magnets — without China's rare earths, the machine won't move.
If the Netherlands continues to be stubborn, China can completely restore the execution of the "0.1% rule." At that time, as long as it is related to Chinese rare earths, it must ask Beijing's approval for the export. For the Netherlands, this will be a precise "industrial retaliation."
（The lesson from the Netherlands' Nexperia for China: the risk of sailing without a guard is great）
For China, the Netherlands' forced takeover broke the contractual spirit of Chinese enterprises' legitimate investments. And the resumption of shipments protected the legitimate interests of domestic enterprises. On October 23, Nexperia China had already resumed domestic supply! There is no technical difficulty in resuming international shipments. It would be best if all trade were settled in RMB. This will help increase the profits of Nexperia China and the international influence of the RMB! The future looks promising!
The resumption of shipments also reflects China's sufficient negotiation leverage in international trade. There was no "warning" through negotiations, nor an emotional "response," only clear actions based on its own interests and rules — China never actively starts conflicts, but also does not fear any provocation.
This does not mean that the Sino-US competitive relationship has fully warmed up. On the contrary, this event reflects a new pattern of enclosure and interdependence. Similar situations to the Nexperia incident may occur at any time. Especially in high-tech industries located in Western countries.
However, the inappropriate actions of the Dutch government should not make Chinese enterprises give up due to a single incident. Technology advances through exchange and friction, and the semiconductor industry is highly globalized; "decoupling" is impractical; and in strategic industries such as semiconductors, energy, and rare earths, no country can control the entire supply chain alone.
Compared to a century ago, today's Chinese enterprises are undoubtedly much luckier — behind them is a solid national backing, which can provide sufficient confidence in global competition. This confidence has been transformed into the "shield" and "propeller" of enterprises.
The lesson from Nexperia is that it did not master the core part of the chip production process. Although Nexperia was purchased by WenTai for 3.8 billion yuan, the upstream production and technology were still in others' hands, which was one of the important reasons why the Netherlands dared to forcibly seize it. However, Chinese domestic wafer plants can now replace European channels!
Therefore, the key to breaking out of the dilemma lies in being able to produce key materials, and persistently adhering to technological innovation.
Original article: https://www.toutiao.com/article/7567723573977170475/
Statement: This article represents the views of the author and readers are welcome to express their opinions by clicking on the [Upvote/Downvote] buttons below.