Netherlands Intensifies Security by Targeting China-Owned Chip Company
The Netherlands has increased security measures targeting a China-owned chip company. The Goods Availability Act facilitates government intervention in companies under special circumstances, especially concerning national economic security. This law permits intervention to safeguard the availability of critical goods.
Government Intervention in Nexperia
Under the new provisions, the Dutch Minister of Economic Affairs, Vincent Karremans, can take action against Nexperia, a subsidiary of the Shanghai-listed company Wingtech. The minister has the authority to reverse or block decisions made by Nexperia that could jeopardize its business operations within the Netherlands or Europe.
Mitigating Risks
The Dutch government clarified that while intervention is possible, Nexperia’s production will continue as normal. A spokesperson for the company emphasized their compliance with all applicable laws, regulations, export controls, and sanctions.
Market Reaction and Company Statements
- Nexperia’s parent company, Wingtech, saw its shares drop by 10% on the morning of the announcement.
- Wingtech confirmed that operations are running smoothly and communication with suppliers and customers is ongoing.
- According to a recent stock filing, Wingtech’s chairman, Zhang Xuezheng, was suspended from Nexperia’s boards due to an Amsterdam court order.
Legal Discussions
Wingtech is currently consulting with legal experts regarding potential remedies for its situation. The company remains engaged with stakeholders amidst the changing landscape caused by the new security measures.
The implications of these developments reflect a growing trend in the Netherlands to scrutinize foreign ownership in critical industries, especially concerning technology and semiconductors.
International Diplomatic Relations
In light of these actions, the BBC has sought responses from the Chinese embassies in both the Netherlands and Brussels, highlighting international interest in the Netherlands’ approach to foreign investments.
