Hajra Naz
The Dutch government has taken control of Nexperia, a chip company based in the Netherlands and owned by China. The move came after pressure from the United States, showing how countries are being pulled into the ongoing US-China tech rivalry.
Nexperia, based in Nijmegen, makes low-end chips used in electronics, cars, and industrial machines. It also runs factories in Germany and the UK.
On Sunday, the Dutch government announced it had taken control of the company. Nexperia said its CEO, Zhang Xuezheng, who is also a shareholder, was suspended by court order.
US Pressure Behind the Decision
According to court documents, US officials told the Netherlands that Zhang would need to be replaced if Nexperia wanted to avoid US export restrictions.
The US places certain foreign companies on what’s called an “entity list” — a list of businesses considered threats to national security or foreign policy interests. Companies on that list face strict limits on trade with American firms.
The US recently expanded the list to include subsidiaries that are 50% or more owned by already-listed companies. That made Nexperia a target because it is fully owned by Wingtech, a partly state-owned Chinese company that’s already on the list.
Washington said the rule would take effect later this year, giving companies time to adjust.
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Growing Tension Between the US and China
Beijing responded to America’s new export limits by tightening its own export rules on rare earth materials, metals used in electronics, and clean energy products.
This move caused more friction, with President Donald Trump threatening new tariffs on Chinese goods.
Documents from the Amsterdam Court of Appeal revealed that US and Dutch officials discussed the issue in June. The US said that as long as Nexperia’s CEO was a Chinese national, it would be hard for the company to qualify for exemptions.
The Netherlands later warned Nexperia about the new US rule, saying it could affect the company’s ability to operate freely.
Dutch Government’s Explanation
When asked if the US pushed the Netherlands to act, Nexperia referred to a government statement saying the company’s European operations were being “compromised in an unacceptable way.”
The Dutch economic ministry said it took action due to “serious governance problems.” Officials said the goal was to protect the European chip supply in case of a crisis.
For one year, Nexperia cannot move assets, make key decisions, or change operations without government approval.
China and Nexperia’s Reaction
China’s government called the decision politically motivated.
Nexperia’s parent company, Wingtech, said it would not bow to political pressure and called the takeover “discriminatory.”
Wingtech also said it was taking legal and diplomatic steps to reverse the decision. It accused the Netherlands of acting out of geopolitical bias, not real security concerns.
Meanwhile, China’s foreign ministry warned other countries not to “politicize trade and economic issues.”
The Global Times, a Chinese state-run newspaper, also criticized the Netherlands, calling the action “predatory” and “a serious harassment” of a Chinese company.
Nexperia said it is working with Chinese officials to get an exemption from new export rules and remains hopeful that a solution can be reached.
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FAQs
1. Why did the Netherlands take control of Nexperia?
The government said there were governance issues and concerns about national security and chip supply during emergencies.
2. What role did the United States play?
The US warned the Netherlands that Nexperia’s Chinese leadership could make it subject to export restrictions, prompting Dutch action.
3. Who owns Nexperia?
Nexperia is fully owned by Wingtech, a Chinese company that is partly state-owned.
4. How long will Dutch control last?
The government will oversee Nexperia for one year, during which the company cannot make major changes without approval.
5. How did China respond?
China called the move politically biased and accused the Netherlands of unfairly targeting a Chinese business.
