China calls the Netherlands "unconstructive" in Nexperia conflict

"The Chinese Ministry of Commerce accuses the Netherlands of not cooperating constructively in finding a solution to the conflict surrounding chipmaker Nexperia. Beijing warns that further disruptions to the supply chain are inevitable. The conflict escalated when the Dutch government took control of Nexperia on September 30. The move was intended to allay concerns about Chinese parent company Wingtech. The Netherlands fears that Nexperia's expertise will be siphoned off to China. Beijing responded a few days later with export restrictions on Nexperia products from China."

"Although Nexperia produces most of its chips in Europe, about 70 percent are packaged in China before distribution. The export blockade threatens to shut down assembly lines. European car suppliers are expressing serious concerns about the continuity of their production. Various industries are waiting for a political solution. The White House announced last week that China would take "appropriate measures" to resume trade from Nexperia's Chinese facilities. EU Trade Commissioner Maroš Šefčovič reported "progress" in the talks on Monday, without giving details."

The Netherlands took control of chipmaker Nexperia on September 30, citing concerns about its Chinese parent company Wingtech and the risk of expertise being transferred to China. Beijing responded with export restrictions on products from Nexperia's Chinese facilities while saying exceptions are being granted. The Chinese Ministry of Commerce accuses the Netherlands of failing to cooperate constructively and not taking concrete action to resolve the dispute. Around 70 percent of Nexperia chips are packaged in China, raising risks of assembly-line stoppages for European automakers. International and EU officials report talks and some progress, and consultations are ongoing.

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