"China's Ministry of Commerce welcomed the announcement as a first step, but called for the full revocation of the order, describing it as the root cause of the supply chain disruptions. It also criticised a Dutch court's erroneous ruling last month that forced out Nexperia's Chinese CEO, Zhang Xuezheng, over alleged mismanagement. Jo Van Biesebroeck, an economics professor at KU Leuven, said Europe's efforts to craft a strategy for managing China's involvement in critical supply chains were a work in progress."
"The Nexperia action was triggered by specific actions, and the main worry now seems to be diminished with the personnel change at Nexperia, Biesebroeck told Al Jazeera. The Dutch government made clear how far it is willing to go, and it seems like China has met them halfway. The Dutch government took effective control of Nexperia, owned by Jiaxing-based Wingtech, in late September, citing the need to ensure chip supplies amid concerns Zhang could move manufacturing operations and intellectual property to China."
The Netherlands suspended an order to seize control of Nexperia and will return control to its Chinese parent following constructive talks with Chinese officials and consultations with partners. Chinese authorities have taken measures to ensure chip supplies, and China's Ministry of Commerce welcomed the move while urging full revocation of the order and criticising a Dutch court ruling that removed Nexperia's CEO. Economists say Europe is still developing a strategy to manage China’s role in critical supply chains, and a personnel change at Nexperia has eased the immediate concerns about moving operations or intellectual property to China.
Read at www.aljazeera.com
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