BEIJING, China, Nov 18 — The Dutch government’s move to distort facts and persist in unilateral actions is counterproductive to resolving issues regarding Nexperia, a Chinese-owned semiconductor company based in the Netherlands, said market watchers, warning that such actions will only heighten tensions with China.
China is extremely disappointed and strongly dissatisfied with the statement made by Vincent Karremans, the Dutch minister of economic affairs, as it runs contrary to facts, a spokesperson for China’s Ministry of Commerce said on Friday.
During an interview with a foreign media outlet, Karremans said that he had no regrets over the Netherlands’ decision to take over Nexperia.
The China Chamber of Commerce to the EU (CCCEU) said on Saturday in a weekly update that the Dutch side should immediately stop its wrongful interference and restore normal supply chains. If the Netherlands makes substantive efforts, pressure on the global supply chain could be eased, according to the Brussels-based chamber.
The CCCEU represents more than 100 members and chambers in the member states of the European Union, covering over 1,000 Chinese companies, including Bank of China (Luxembourg) SA and China Three Gorges (Europe) SA.
Confrontation
The chamber said that continued delays will not only deepen confrontation between China and the Netherlands, but may also inflict lasting damage on the country’s credibility in the Chinese market. The Dutch side should think twice before acting further.
According to the Ministry of Commerce, China has agreed to the Netherlands dispatching personnel to China for consultations. China stands ready to work with the Dutch side to resolve the current issue as soon as possible, in the interest of maintaining the security and stability of global semiconductor industrial and supply chains, said the ministry.
Wang Yong, a professor of international relations at Peking University, said that if the Nexperia case is not handled properly, it could affect normal economic and trade relations between China and the EU.
Such actions put geopolitical considerations before commerce and violate basic multilateral trade principles, said Wang.
Noting that the actions taken by the Dutch side violate the fundamental principles of international law, Ren Hongda, an assistant researcher at the Institute of International Law, which is part of the Beijing-based Chinese Academy of Social Sciences, warned that global investors should reassess the Netherlands’ business environment and its so-called commitment to contractual integrity.
The Dutch government announced on Sept 30 that it would take control of Nexperia for one year, forbidding the company and its subsidiaries from adjusting assets, intellectual property, business operations or workforce.
China, in a responsible move to safeguard the stability and security of the global semiconductor supply chain, announced on Nov 1 that it will grant export exemptions for eligible orders and support the resumption of supply from Nexperia’s China operations.
September 30 announcement
Despite geopolitical uncertainties and rising unilateralism, many Netherlands-based companies — including ASML, Signify, Royal Philips and Louis Dreyfus Company (LDC) — continue to view China as a key growth market and actively participated in this year’s China International Import Expo in Shanghai from Nov 5 to 10.
LDC, a Rotterdam-based agricultural trader and processor, also expanded its footprint in China by putting a specialty feed protein production line into operation at its Tianjin plant in early November.
“I have heard about decoupling, fragmentation and others. When we think about investment globally, I see the potential and fantastic growth opportunities in China, as more people enter the middle-income group,” said Michael Gelchie, CEO of LDC.
Thus, China’s consumer market will continue to expand, and the global landscape still reflects the underlying strength that LDC expects to see in the Chinese market over the coming years, Gelchie said.
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