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02:35
Netherlands: Dutch intervention against Chinese chipmaker Nexperia will backfire: expert
A Dutch scholar has warned that government intervention in Chinese-owned chipmaker Nexperia risks backfiring on the Netherlands, damaging its global image and threatening Dutch business interests in China. The Dutch government said on Oct 12 that it had made a "highly exceptional" decision to intervene in Nexperia, a subsidiary of Chinese company Wingtech, citing concerns that it could "pose a risk to Dutch and European economic security." That move followed a September 30 administrative order from the Ministry of Economic Affairs, which restricted Nexperia’s business decisions and its affiliated entities. In an interview with China Media Group (CMG), Henk Overbeek, professor emeritus at Vrije Universiteit Amsterdam, said the decision could also harm Dutch companies operating in China. He emphasized that diplomatic dialogue should have preceded the intervention, warning of potential repercussions. Meanwhile, European auto industry officials say Nexperia has yet to resume shipments to China, deepening the region’s ongoing chip shortage. According to China's Ministry of Commerce, China agreed to the Netherlands dispatching personnel to China for consultations. Overbeek stressed that the Nexperia dispute has escalated beyond the company itself and now demands a diplomatic resolution between governments. Shotlist: Nijmegen, Netherlands - Recent: 1. Various of car moving, view outside window; 2. Various of semiconductor manufacturer Nexperia's headquarters; 3. Various of flag banners, directory board with list of companies including Nexperia; 4. SOUNDBITE (English) Henk Overbeek, professor emeritus at Vrije Universiteit Amsterdam: "My first reaction when I heard this on October 12 or 13 when the news came out is this is really, first, it's very stupid. Second, it's very dangerous for all those Dutch companies that operate in China that have establishment in China. Because there will be repercussions and now it's good news that there is diplomatic contact between the Chinese government and the Dutch government. But that should have happened before the intervention, in my view."; 5. Various of cars running on road; 6. Various of Nexperia's headquarters, flag banners; 7. SOUNDBITE (English) Henk Overbeek, professor emeritus at Vrije Universiteit Amsterdam: "It's important enough in itself because in Europe it's one of the major chip suppliers and the European auto industry is heavily dependent, not completely, but heavily dependent on Nexperia. But the as I tried to explain, I think that the importance goes beyond the this particular importance of Nexperia."; 8. Various of Nexperia's headquarters, directory board; 9. SOUNDBITE (English) Henk Overbeek, professor emeritus at Vrije Universiteit Amsterdam: "It's clear that there will have to be a diplomatic solution. The solution can no longer be found at the level of Nexperia itself. This has now become a diplomatic issue between the Chinese and the Dutch government and between China and the European Union. So that the solution has to be has to come from diplomatic contacts between the two sides."; 10. Flag banners. [Restrictions: No access Chinese mainland]
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