China calls on Netherlands to correct ‘mistake’ over chipmaker Nexperia

China has demanded that the Netherlands stop granting Chinese-owned chipmaker Nexperia, accusing the European nation of escalating the world’s supply chains.

The Netherlands should “immediately correct its mistake” and stop “improper administrative interference” in the business, according to China’s Ministry of Commerce on Wednesday.

In response to concerns that Wingtech, the company’s Chinese owner, was attempting to relocate its European production to China and that it needed to ensure chip supplies, the Netherlands issued an order in September to stop Nexperia from making important decisions without the government’s consent.

The Dutch government was informed by the United States that Nexperia would likely face sanctions from the United States unless its Chinese CEO, Zhang Xuezheng, was replaced.

Following “constructive” discussions with Beijing, the Dutch government announced last month that it had suspended the order issued under the Cold War-era Goods Availability Act. The Dutch government has denied doing so under US pressure.

However, Zhang’s dismissal from a Dutch court for alleged mismanagement continues.

The Chinese Commerce Ministry said in a statement on Wednesday that it is perplexing that the Dutch side continues to hold its ground in the face of global industry anxiety and unease, showing no compassion for the security of the global semiconductor industry and supply chain, or even taking any meaningful action.

The Dutch Ministry of Foreign Affairs and Nexperia did not respond to requesting comment right away.

Beijing and The Hague have been at odds with each other for months over the status of the Nijmegen-based chipmaker, a premier manufacturer of low-end semiconductors for cars and consumer electronics.

China retaliated by preventing exports of finished chips from Nexperia’s Chinese production facilities following the Dutch government’s order.

In response to concerns about disruption to global supply chains, Beijing announced last month that it would exempt civilian-use chips from the restrictions.