The Netherlands are working toward a resolution in their dispute with China over the chip manufacturer Nexperia, aiming to find common ground during a meeting with Chinese government officials scheduled for next week.
"A high-level delegation from my ministry will travel to Beijing to continue our efforts to find a mutually acceptable solution," Dutch Minister of Economic Affairs Vincent Karremans announced Thursday on the platform X. Together with European and international partners, the Netherlands are monitoring whether China will implement the recently welcomed relaxation of export restrictions.
The conflict between the Netherlands and China over the globally significant chipmaker, which is based in the Netherlands but owned by the Chinese company Wingtech, has led to production issues, particularly in the automotive sector. Major suppliers such as Bosch and ZF Friedrichshafen anticipated production stoppages and preemptively applied for short-time work. The crisis has again highlighted Europe's vulnerability to reliance on Chinese materials and intermediate goods.
In early October, China halted exports of products containing Nexperia chips that are manufactured in the Netherlands and further processed in China. This move came after the Dutch government removed Nexperia's Chinese CEO and took control of the company, citing concerns over potential technology transfer to China. U.S. sanctions against Wingtech also played a role. Despite ongoing diplomatic efforts to resolve the dispute--including interventions by German Federal Minister for Economic Affairs Katharina Reiche--China accused the Netherlands of imposing a blockade.
UNCERTAINTY OVER SUPPLIES
In early November, the government in Beijing eased the export ban, allowing shipments from China to resume, though the situation remains unstable. Automotive supplier Hella currently receives sufficient quantities of Nexperia semiconductors from China, having secured new supply agreements with the chip producer soon after the dispute began, Hella told Reuters. "Under the current conditions and uncertainties in supply chains, this arrangement is fundamentally stable," a company spokesperson added. At present, Hella is able to maintain production and fulfill its delivery commitments.
Aumovio also secured shipments in early November through an export exemption. Typically, suppliers rather than automakers themselves are directly affected by such shortages, as the basic chips are installed in electronic automotive components. Truck manufacturer Daimler Truck stated that it has also sourced semiconductors through dealers, managing the shortage effectively so far.
(Reporting by Bart Meijer, Ilona Wissenbach; Edited by Ralf Banser. For inquiries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)
