Nexperia China resumes sales to domestic distributors

"The Chinese subsidiary of chipmaker Nexperia has resumed deliveries to local distributors. However, there have been significant changes: sales are now only permitted for the domestic Chinese market, and all transactions must be settled in yuan. This is according to Reuters, based on sources. Distributors are also required to have their own customers pay in yuan, a development that follows China's export ban due to a property dispute."

"The situation arose after the Dutch government took control of Nexperia on September 30 and removed Chinese CEO Zhang Xuezheng. The government expressed concern that technology could be appropriated by the Chinese parent company Wingtech Technology. Court documents show that the takeover occurred after increased US pressure, following the placement of Wingtech on an export restriction list. In response, on October 4, the Chinese Ministry of Commerce blocked the export of Nexperia chips from China."

Nexperia's Chinese subsidiary resumed deliveries to local distributors under new conditions that restrict sales to the domestic Chinese market and require payments in yuan. Distributors must ensure their customers also pay in Chinese currency. The shift followed an earlier halt after a Chinese export ban linked to a property dispute. The policy change appears intended to make Chinese operations more independent from the Dutch parent company. The Dutch government took control of Nexperia on September 30 and removed CEO Zhang Xuezheng amid concerns over Wingtech Technology. On October 4, the Chinese Ministry of Commerce blocked exports of Nexperia chips from China.

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