China has authorized the Chinese division of the Dutch microprocessor manufacturer Nexperia - a subsidiary of the 'Asian giant' Wingtech Technology company - to resume exports of microchips, providing relief to the global automotive sector.
According to 'Bloomberg', the CEO of the automotive parts manufacturer Aumovio, Philipp von Hirschheydt, has reported that they have been able to acquire these products after Amsterdam showed willingness to relinquish control of the company.
Following this intervention, Nexperia's unit in China declared itself insubordinate and stated that it would make decisions independently from the headquarters. They also urged employees to disobey directives from Europe.
On October 13, the Dutch government invoked the Goods Availability Act in an "extremely exceptional" manner to address operational issues at Nexperia that allegedly threatened the continuity and protection of strategic technological capabilities.
The Netherlands indicated that the loss of such knowledge could pose a "risk to Dutch and European economic security" and framed the initiative in the need to ensure that goods produced by Nexperia would be available "in case of emergency." However, it was emphasized that operations would continue as usual.
Thus, the Dutch Minister of Economy was empowered to block or revoke company decisions that could potentially harm its interests, its future as a Dutch and European company, or the preservation of a crucial supply chain for the continent.
The actions of the Netherlands coincided with pressures from the US to replace Nexperia's CEO, Zhang Xuezheng. Otherwise, the company would have been blacklisted.
Wingtech Technology itself has been on a blacklist since 2024 due to its partial ownership by the Chinese State-owned Assets Supervision and Administration Commission. There are concerns in Washington that the subsidiary does not operate autonomously from its parent company.
As a result of the dispute, Beijing banned Nexperia from exporting products from China, while its Ministry of Commerce urged the Netherlands to promptly correct what they deemed as "misconduct."
Nexperia, headquartered in Nijmegen with subsidiaries in various countries, manufactures, among other products, chips used in the European automotive industry and consumer electronics. It was acquired by Wingtech Technology in October 2018.