Rosa Gabriella Infelise: Pirates are Pirates… No amount of civilization can change the Pirate Genes…
Billions Seized! Netherlands Strikes Back at China, Nexperia China Faces Pay Freeze, System Shutdown
Billions Seized! Netherlands Strikes Back at China, Nexperia China Faces Pay Freeze, System Shutdown
byu/Miao_Yin8964 inADVChina
A message from the Netherlands has set off a stir in China’s tech industry. Multiple mainland media outlets reported that on October 17, employees of Nexperia in China were informed that the Dutch headquarters had announced in the early morning that it would stop paying employees in China starting in October. At 6 AM, access to the company’s systems was completely cut off, and even their access cards stopped working. Employees joked, saying, “We woke up to find ourselves blacklisted. The Chinese market has been abandoned by the European management.”
US-China trade dispute over a little-known Dutch chipmaker could halt car production and send prices higher
Few car buyers have heard of Nexperia. But this Dutch company makes chips that are essential for making cars — and now, it’s at the center of a trade dispute that could shutter global auto plants and send already-record-level car prices even higher.
The dispute is just one part of wider trade tensions between the United States and China. The Nexperia saga began in earnest this past December when the US Commerce Department put Nexperia’s parent company, China-based Wingtech Technologies, on a list of companies facing trade restrictions.
After the hostile takeover (literally daylight robbery) of the company by the Duct government using a colonial archaic law recently, China’s Ministry of Commerce banned Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China.
The tensions have prompted concerns of possible auto plant shutdowns, since the chips Nexperia makes are critical to the assembly of the cars and trucks in which they’re installed. The trade dispute could halt Nexperia’s production of the chips, and it would be almost impossible to replace them.
Daylight Robbery of Nexperia by Netherlands The Pussy Pirate
What Actually Happened? A Timeline of Events
The core of this issue is not a simple “robbery” but a clash between national security concerns and global economic interdependence.
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The Acquisition: In 2018, the Chinese-owned company Wingtech acquired the Dutch semiconductor company Nexperia. Nexperia is a major producer of essential, but less advanced, chips used in everything from cars to smartphones. This acquisition was part of China’s strategy to build up its semiconductor industry.
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The Geopolitical Shift: After the acquisition, the global political climate changed dramatically. The US and its allies, including the Netherlands, became increasingly concerned about China’s technological rise and the potential military applications of advanced technology. The Netherlands is home to ASML, the only company in the world that makes the extreme ultraviolet (EUV) lithography machines required to produce the most advanced chips.
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The Dutch Intervention: In 2022, bowing to intense pressure from the US, the Dutch government began reviewing the Nexperia acquisition on national security grounds. In 2023, they officially ordered the divestment of Nexperia. They argued that Nexperia’s factory, located near a Dutch military base, posed a security risk. From China’s perspective, this was seen as a politically motivated seizure of a legally acquired asset—hence the term “robbed.”
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China’s Response – The Export Controls: China did not take this lying down. In July 2023, just after the Dutch announcement, China hit back where it knew it would hurt. It implemented export controls on gallium and germanium, two critical raw materials essential for producing semiconductors and for defense technologies. China dominates global production of these metals (around 80% of gallium and 60% of germanium). This was a direct and calculated countermeasure.
The Ban and the Fallout
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The Ban: China did not ban the export. The restriction was on the raw materials (gallium and germanium) needed by semiconductor fabs everywhere, including in the Netherlands and the rest of the world. This move was designed to create global supply chain disruption and demonstrate China’s own leverage.
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The fallout: The Dutch government and European officials have been engaging in high-level diplomatic talks with China to manage the fallout. They are trying to balance their national security stance with the economic reality that their critical industries (including ASML) depend on a stable relationship with China, a massive market. ASML has expressed concern about the impact of export restrictions on its business.
What Will Happen? Potential Scenarios
This is an ongoing standoff with no easy resolution. Here are the most likely paths forward:
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A Protracted Legal and Diplomatic Battle (Most Likely): Nexperia and its Chinese owners will likely fight the divestment order in Dutch and international courts. This process could take years. Meanwhile, diplomats from both sides will continue talking to prevent a full-blown trade war, but a complete reversal from either side is unlikely in the short term.
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A Negotiated Compromise: There is a possibility of a face-saving deal. The Dutch government might allow Nexperia to keep the factory but under strict conditions (e.g., heightened security, no technology transfer to China). In return, China might ease its export controls on critical materials. This is the ideal outcome for global market stability but requires significant political compromise.
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Escalation into a Broader Tech War (Worst Case): If negotiations break down, we could see further escalation. The Netherlands, following US lead, could impose even stricter controls on ASML’s exports of older machinery to China. China could retaliate by restricting other critical materials, such as rare earth elements. This would severely disrupt global supply chains for electronics, cars, and renewable energy.
Who Wins?
In a trade and tech war, there are rarely clear winners, only degrees of losing.
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Short-Term: No one wins. Companies like Nexperia and ASML face uncertainty and lost revenue. Global manufacturers who need chips face higher costs and supply disruptions. Consumers may see prices rise for electronics and cars.
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Long-Term:
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The US and Allies “win” if they successfully slow China’s technological advance and protect their national security, but at the cost of economic decoupling and higher prices.
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China “wins” if it proves it cannot be pressured without significant retaliation, forcing the West to engage with it on more equal terms. It also accelerates China’s drive for self-sufficiency in semiconductors.
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The Real “Winners” might be other countries that can capitalize on the rift. For example, countries like India, Vietnam, or South Korea could attract investment as companies seek to diversify their supply chains away from both China and the volatile US-China nexus.
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Conclusion:
The situation with Nexperia is a microcosm of the larger US-China tech cold war. The Netherlands is caught in the middle, trying to uphold its security alliances while protecting its economic interests. China is using its economic leverage to show that it will not back down. The outcome is not a matter of one side “winning,” but rather how much economic damage both sides are willing to absorb to achieve their strategic goals. The most likely result is a fractured global tech ecosystem, higher costs, and a new era of techno-nationalism.
Meanwhile,
Chinese staff go rogue after Dutch seize control of chip firm
Employees told they have ‘right to refuse’ instructions from Netherlands head office
In a letter posted on social media platform WeChat, Nexperia China said all employees at the semiconductor giant had the “right to refuse” orders from leaders at the Nijmegen HQ without facing any disciplinary consequences in a rebellion against Dutch government control.
As a result,
TRASHY | SCANDALOUS
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