China urges Netherlands to resolve Nexperia issue, protect global semiconductor supply chain

Beijing [China], November 5 (ANI): China's Ministry of Commerce on Tuesday urged the Netherlands to "stop interfering in internal corporate affairs and work toward a constructive solution to the issue of the semiconductor manufacturer Nexperia," Xinhua reported.

A spokesperson for the ministry, commenting on recent issues involving Nexperia, an overseas subsidiary of Chinese company Wingtech, said the Dutch side failing to take concrete action will "inevitably deepen the adverse impact on the global semiconductor supply chain, an outcome neither the Chinese side nor the global industry wishes to see."

The spokesperson added, "China will firmly safeguard the legitimate rights and interests of enterprises, and strive to maintain the stable and smooth operation of the global semiconductor supply chain."

China also called on the Dutch side to "work with the Chinese side responsibly, bearing in mind the broader China-Netherlands and China-EU economic and trade relations, as well as the stability and security of global industrial and supply chains."

The MOFCOM spokesperson reiterated that "the Dutch side should stop interfering in corporate internal affairs and find a constructive solution to the Nexperia issue."

The warning followed the Dutch government's September decision to seize control of Nexperia from its Chinese parent Wingtech Technology over economic security concerns and suspend its CEO Zhang Xuezheng.

The MOFCOM spokesperson said the Dutch enterprise court issued "an erroneous ruling stripping the Chinese enterprise of its equity, severely infringing upon the legitimate rights and interests of the Chinese enterprise."

"Thereafter, the Dutch government disregarded multiple reasonable demands raised by the Chinese side during consultations, failing to demonstrate a constructive attitude or actions while escalating the global supply chain crisis," the spokesperson added.

Jian Junbo, director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times that China has played a crucial role in stabilizing global industrial and semiconductor supply chains.

He noted that China is seeking to exempt some Nexperia orders from export restrictions, and "the resulting supply chain disruptions in Europe were the consequences of the Dutch side's improper actions, not China's."

Jian added, "China's measures are defensive and responsible, aimed at maintaining overall supply chain stability."

The MOFCOM spokesperson said on Saturday that it will grant export exemptions to eligible shipments after "a comprehensive review of the circumstances of companies."

"As a responsible major country, China takes into full account the security and stability of domestic and global supply chains," the spokesperson added, encouraging companies facing difficulties to "reach out to the Ministry of Commerce or local commerce authorities and request such exemptions."

Nexperia's China unit on Sunday denied claims by Nexperia Netherlands that "local management's recent failure to comply with agreed contractual payment terms" occurred, calling it "entirely fabricated and constituted malicious defamation against Nexperia China's management."

The company added, "At present, Nexperia China has established sufficient inventories of finished goods and work-in-progress, enabling stable and sustained fulfilment of customer orders through year-end and beyond."

Jian noted in the Global Times that by easing export restrictions to help Europe's auto supply chain, China has shown the "constructive role of a responsible major power in safeguarding global industrial stability."

He emphasized that "any politically driven attempt to 'cut off' supply chains under the guise of security will only harm both sides."

Cui Hongjian, a professor at the Academy of Regional and Global Governance, Beijing Foreign Studies University, told the Global Times that China's position is clear: "the Dutch side must bear full responsibility for disrupting Nexperia's operations."

Cui added, "Regardless of its explanations, the Dutch government's extraordinary intervention has magnified tensions and turned technical issues into political ones," calling it "a reckless move that damages bilateral relations and destabilizes the global supply chain."

Cui stressed that China has shown goodwill by "seeking dialogue and granting export exemptions in hopes of stabilizing the situation," but warned that "if the Dutch side does not work to find a proper solution, it may pay higher cost and mounting pressure in resolving the issue in future consultations." (ANI)

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