- China’s Ministry of Commerce has called on the Netherlands to “immediately correct its mistakes” over its intervention in chipmaker Nexperia, which Beijing says has disrupted the global semiconductor supply chain.
- The dispute centres on Dutch government actions against the China-linked company and resulting export restrictions, highlighting geopolitical and industrial tensions in critical tech sectors.
What happened: China pushes Netherlands to reverse course on Nexperia
Beijing has publicly urged the Dutch government to reverse or amend its actions involving Nexperia, the Netherlands-based semiconductor manufacturer owned by Chinese firm Wingtech Technology. In recent statements, China’s commerce ministry described the Dutch intervention in Nexperia’s governance as a mistake and a key obstacle to restoring stability in the global chip production and supply chain.
The situation dates back to late 2025 when the Netherlands invoked national economic security powers to seize control of Nexperia, citing concerns about technology transfer and the continuity of critical chip production. China responded by blocking exports of Nexperia chips manufactured in Chinese facilities, a move that affected automotive and electronics supply chains domestically and abroad.
China has characterised the Dutch government’s actions as inappropriate interference in corporate operations and has insisted that removing the barriers is necessary to stabilise production and trade. Beijing also noted that previous steps — such as the Netherlands temporarily suspending its administrative order — are only a partial solution, and full reversal is required to address what China calls the root cause of the supply chain disruption.
Meanwhile, the Dutch side has maintained that its intervention was motivated by legitimate national security considerations, particularly given the role Nexperia plays in supplying chips for automotive and industrial applications. Discussions at ministerial and diplomatic levels have taken place, but both sides remain at odds over how to resolve the dispute.
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Why it’s important
The Nexperia dispute underscores the geopolitical nature of semiconductor supply chains and how national security concerns can trigger broad industrial consequences. Semiconductors are essential to modern electronics, automotive systems and defence infrastructure, making stability in their production and distribution a matter of strategic priority for many governments.
China’s call for corrective action reflects broader trade tensions and competition between major economies over control of critical technologies. For European manufacturers, especially in the automotive sector, disruption to chip supplies can hinder production and economic performance. From a policy perspective, the dispute highlights the delicate balance between safeguarding sensitive technologies and maintaining open global trade flows.
How the Netherlands and China navigate this situation could set precedents for future cross-border disputes involving technology firms and may influence how other nations approach similar conflicts in the rapidly evolving semiconductor landscape.
