China accuses Netherlands of making 'mistakes' over chipmaker Nexperia

In a recent escalation of tensions, China has urged the Netherlands to promptly rectify its alleged 'mistakes' regarding the chipmaker Nexperia. This call comes amid ongoing concerns about the stability of the global semiconductor market, which has been further complicated by technology transfer disputes. The Dutch government took significant action in September by invoking a Cold War-era law to assert control over Nexperia, a company owned by Chinese interests but based in the Netherlands. This intervention was reportedly prompted by security concerns raised by the United States. In retaliation, China has sought to restrict the export of Nexperia’s products, escalating fears among global automakers who are already grappling with shortages of essential components. A representative from China's Commerce Ministry stated that the Netherlands should "immediately correct its mistakes and remove the obstacles to restoring stability and security in the global semiconductor supply chain." The spokesperson expressed perplexity at the Dutch government's apparent indifference to the global industry's anxieties, criticizing its lack of responsible action in addressing these issues. Despite the growing concerns, a Dutch government spokesperson did not provide immediate comments when approached by CNBC. Dutch Economy Minister Vincent Karremans has consistently defended his government's decision to intervene with Nexperia in recent weeks. Nexperia is a key player in the production of foundation chips, including transistors and diodes, vital for various electronic devices. These inexpensive chips are critical components in automotive technology, connecting batteries to motors and powering essential systems like lights, sensors, and entertainment features. The automotive sector has raised alarms regarding the ongoing supply chain disruptions linked to Nexperia's parts, with manufacturers like Nissan and Bosch warning of impending shortages. The German Association of the Automotive Industry (VDA), which includes major brands such as Volkswagen and BMW, has indicated that risks to supply remain high, particularly as they approach the first quarter of 2026.