Nation seeks follow-up actions on Nexperia

The Netherlands has suspended its administrative order regarding Nexperia, a semiconductor manufacturer owned by China's Wingtech Technology, a move analysts see as a thaw in strained economic relations between the two countries that threatened chip supplies vital for global auto manufacturing.

The Dutch government's decision to step back from taking control of Nexperia, which is based in Nijmegen in eastern Netherlands, should be followed up with the full revocation of the order and concrete actions to restore stability to the global semiconductor supply chain, they added.

On Thursday, China once again urged the Netherlands to swiftly and effectively seek an early resolution of the Nexperia issue.

The Dutch government's recent announcement "marks the first step in the right direction toward properly resolving the issue, but there is still some way to go before the issue is fully resolved", said He Yongqian, a spokeswoman for the Ministry of Commerce.

The Dutch side is the "root cause" of and bears the "sole responsibility" for the current disruption in the global semiconductor supply chain, she said, adding that China hopes the Netherlands will continue to demonstrate sincerity in cooperation and take concrete actions to address the matter.

On Tuesday and Wednesday, Chinese and Dutch officials held two rounds of consultations in Beijing, during which the Dutch side offered to suspend the administrative order regarding Nexperia that was issued under the Goods Availability Act.

Dutch Minister of Economic Affairs Vincent Karremans said in a statement on Wednesday that the latest move is "a show of goodwill", and the Dutch government will "continue to engage in constructive dialogue with the Chinese authorities in the period ahead".

On Sept 30, the Netherlands used the rarely invoked Cold War-era law to seize control of Nexperia, citing "acute signals of serious governance shortcomings" and concerns that the company's former CEO was attempting to move its European operations to China.

Enacted in 1952, the Goods Availability Act gives the Dutch government emergency powers to secure essential supplies and production capacity in times of crisis such as wars and natural disasters.

In response, starting on Oct 4, China restricted exports of Nexperia's finished products from the company's facilities in the country, a measure it relaxed earlier this month in a responsible approach toward maintaining global semiconductor supply chain security and stability.

Wang Yong, a professor of international relations at Peking University, said that for China, the "suspension" of the administrative order is substantive only if the Netherlands takes further steps to reestablish all operational conditions to their original state prior to government intervention.

Wingtech, the Chinese parent company of Nexperia, said in a statement on Thursday that while the order has been suspended, the Oct 7 ruling of the Enterprise Chamber of the Amsterdam Court of Appeal remains "fully effective and is entirely unaffected" by the suspension.

Wingtech's control over Nexperia remains subject to restrictions, so the former will take all necessary actions to safeguard its legitimate rights and interests, the statement added.

Huang Mengmeng, an associate researcher at the Chinese Academy of Social Sciences' Institute of European Studies, said "the real measure of noninterference" could be gauged based on "whether the Chinese--appointed leadership can return and whether the nationalization measures are rescinded".

A credible solution requires not only suspension of the order, but also concrete assurances that similar administrative interventions will not be repeated, Huang said.

Jorge Toledo Albinana, ambassador of the European Union to China, described the Dutch move as "good news" for China-EU relations, adding that the EU welcomes investment from Chinese companies in Europe — from expanding production capacity to supporting job creation.

Nexperia is a key supplier of essential semiconductors to the automotive industry, and recent shortages due to the Dutch government's intervention have disrupted supply chains, forcing production delays and shutdowns.

Contact the writers at wangkeju@chinadaily.com.cn