China slams Netherlands for chip supply snarls tied to Nexperia

The Chinese government has criticized the Netherlands for stifling a deal that has caused some businesses to cut staff and disrupted the supply chains of the car industry.

Millions of straightforward but common chips for cars and other electronics are produced by Nexperia, a company owned by China but with headquarters in the Netherlands. Since a dispute between Amsterdam and Beijing regarding technology transfers, supply of those chips has been snarled.

The Chinese commerce ministry issued a strong statement on Tuesday urging the Netherlands to “stop interfering” with Nexperia’s internal affairs following positive signals over the weekend in talks&nbsp.

The Dutch side continues to pursue a unilateral course without taking specific actions to address the problem, which will unavoidably worsen the impact on the world’s semiconductor supply chain, according to a statement from the ministry of finance.

There is “no autonomy” in the auto industry.

Beijing’s statement contradicts statements made by the Hague, the Hague, Brussels, and Nexperia that they have been working toward a solution and are worried about carmakers who have been frantically fending off Nexperia’s chips.

On September 30, the Dutch government took control of Nexperia, claiming that Wingtech, the company’s Chinese owner, intended to relocate its European production to China, which would threaten European economic security.

China curtailed exports of the company’s finished chips, which are primarily packaged there. Following a meeting between US President Donald Trump and Chinese President Xi Jinping, it announced this weekend that it would begin accepting applications for exemptions.

Talks between the two governments were still ongoing, according to a spokesperson for the Dutch Ministry of Economic Affairs, which cited a law from the Cold War to intervene at Nexperia.

The spokesperson stated on Tuesday that “we are still in contact with the Chinese authorities and our international partners to work toward a beneficial solution for Nexperia and our economies.”

European carmakers, suppliers, suppliers, and distributors have rushed to China to request exemptions for the export of Nexperia chips, which must be paid for in Chinese currency, or have sought alternative suppliers.

Stellantis, the CEO of the automaker&nbsp, Jeep, and Fiat, claimed on Tuesday that Europe’s supply chain flaws were putting it at a disadvantage in comparison to its Chinese competitors.

At a sector meeting in Paris, Antonio Filosa stated that “our system means we have zero autonomy  as an industrie.” “Observe the Nexperia chip crisis.” Look at the very agonizing April rare earth crisis we experienced.

De-escalate as soon as possible.

The European Commission welcomed industry indications that China had worked with EU companies to restore a partial flow of chips, avoiding a worst-case scenario and allowing for more time and space to be created to come up with a long-term solution.

According to a Nexperia spokesperson, the company was focused on restoring supplies to customers and was trying to “de-escalate as soon as possible” after customers warned it could not guarantee the quality of shipments from its Chinese site.

Mercedes-Benz CEO Ola Kaellenius reported to Reuters in Paris that there were indications that a deal was being struck with China, Europe, and the US, which had put Wingtech on a list of entities late last year.

Kaellenius said, “We will see what the American-Chinese agreement leads to,” adding that the German carmaker currently has enough chips. That is closely being watched by us.