China Accuses Netherlands of Protracted Chip War Threatening European Auto Production
The Dutch government's prolonged actions over Nexperia, a chipmaker seized by authorities at the end of September, have exacerbated the global semiconductor shortage. China has chastised the Netherlands for "unilateral" behavior in attempting to resolve the dispute, stating that this will only worsen the impact on the international semiconductor supply chain.
As tensions between the two countries persist, the European Union is engaged in urgent talks with Beijing to lift export controls on Nexperia's chips and rare earth minerals. China's move comes amid fears of production stoppages at EU carmakers, with warnings issued by manufacturers such as Jaguar Land Rover and others.
The dispute centers on Nexperia, which was seized due to US security concerns about its Chinese parent company, Wingtech Technology. The Dutch government cited the need for intellectual property protection and the risk that Wingtech could relocate its assets. However, China has accused the Netherlands of attempting to create a new Dutch-owned company at Nexperia's expense.
China's Ministry of Commerce warned that the lack of cooperation from the Netherlands would exacerbate supply chain issues and harm both the global industry and China itself. The European Commission stated that some progress was made in talks with Beijing on Friday but cautioned that more work remains to be done.
As the standoff continues, the White House announced a truce with China last Thursday, where Beijing agreed to eliminate all export controls on rare earth elements and other critical materials. This marks an apparent shift in the global semiconductor landscape, as tensions ease between the US and China.
For EU carmakers, the chip shortage has already had severe consequences, including production stoppages at Jaguar Land Rover following a cyber-attack last month. The impact of Nexperia's dispute on European auto manufacturers remains to be seen, with many fearing that supply chain issues could lead to further disruptions in the industry.
The Dutch government's prolonged actions over Nexperia, a chipmaker seized by authorities at the end of September, have exacerbated the global semiconductor shortage. China has chastised the Netherlands for "unilateral" behavior in attempting to resolve the dispute, stating that this will only worsen the impact on the international semiconductor supply chain.
As tensions between the two countries persist, the European Union is engaged in urgent talks with Beijing to lift export controls on Nexperia's chips and rare earth minerals. China's move comes amid fears of production stoppages at EU carmakers, with warnings issued by manufacturers such as Jaguar Land Rover and others.
The dispute centers on Nexperia, which was seized due to US security concerns about its Chinese parent company, Wingtech Technology. The Dutch government cited the need for intellectual property protection and the risk that Wingtech could relocate its assets. However, China has accused the Netherlands of attempting to create a new Dutch-owned company at Nexperia's expense.
China's Ministry of Commerce warned that the lack of cooperation from the Netherlands would exacerbate supply chain issues and harm both the global industry and China itself. The European Commission stated that some progress was made in talks with Beijing on Friday but cautioned that more work remains to be done.
As the standoff continues, the White House announced a truce with China last Thursday, where Beijing agreed to eliminate all export controls on rare earth elements and other critical materials. This marks an apparent shift in the global semiconductor landscape, as tensions ease between the US and China.
For EU carmakers, the chip shortage has already had severe consequences, including production stoppages at Jaguar Land Rover following a cyber-attack last month. The impact of Nexperia's dispute on European auto manufacturers remains to be seen, with many fearing that supply chain issues could lead to further disruptions in the industry.