EU state seizes Сhinese tech company
The Dutch government has taken control of a Chinese-owned chipmaker based in the Netherlands, citing risk to the EU’s economic and technological security. The firm called the move “excessive,” saying it complied with all relevant laws and regulations.
The Netherlands Economy Ministry revealed late on Sunday that it had invoked a never-before-used emergency law to take control of manufacturer Nexperia, owned by China’s Wingtech Technology.
Once part of Dutch electronics group Philips, Nexperia specializes in the high-volume production of chips used in the automotive, consumer electronics, and other industries.
Amsterdam said it wanted to prevent a situation in which Nexperia’s chips could “become unavailable in an emergency” which “could pose a risk to Dutch and European economic security.”
The Dutch government called the move “highly exceptional,” citing “recent and acute signals of serious governance shortcomings and actions” within the company.
Wingtech shares tumbled 10% in Shanghai on Monday, forcing a halt in trading after hitting the daily limit.
The tech firm decried the Dutch government’s move as “excessive intervention driven by geopolitical bias, rather than a fact-based risk assessment,” according to a now-deleted WeChat post, which was archived by the Chinese policy blog Pekingnology. Wingtech said it would take actions to protect its rights and would seek government support.
The company later said in a filing to the Shanghai Stock Exchange that its control over Nexperia would be temporarily restricted due to the Dutch order and court rulings affecting decision-making and operational efficiency.
The Dutch takeover of Nexperia comes at a time of escalating global trade tensions. Over the past year, China and the EU have clashed over what the bloc claims is Beijing’s dumping of certain key goods and its industrial overproduction. China has accused the EU of protectionism.
Last week, China tightened its restrictions on the export of rare earth elements and magnets, a step that could further hurt the EU’s struggling auto industry.
