China openly accuses the Netherlands of destabilizing the global chip market and demands the immediate reversal of a government decision blocking Chinese interests.
A new focal point of geoeconomic conflict is opening in the heart of the European semiconductor industry. China has openly accused the Netherlands of destabilizing the global chip market, demanding the immediate reversal of a government decision that blocks Chinese corporate interests.
China's call and warning for the chip market
On Wednesday, December 31, 2025, China urged the Netherlands to "immediately correct its mistakes" and lift what it described as obstacles to the stability of the global semiconductor supply chain. This sharp reaction followed the Dutch government’s decision to take control of Nexperia, a Netherlands-based chipmaker owned by the Chinese group Wingtech.
Dutch intervention and Chinese retaliation
The Dutch government intervened in September, invoking the Cold War-era Goods Availability Act. Authorities argued the measure was necessary to prevent the transfer of sensitive technology and production capabilities to China. Beijing responded by blocking exports of Nexperia chips—most of which undergo final packaging in China—escalating the confrontation into a full-scale trade row.
The stakeholders and the stakes
Key players in the dispute are the governments of China and the Netherlands, currently on a collision course over technological security and supply lines. Directly affected are Wingtech and Nexperia, which face operational uncertainty and export restrictions. Meanwhile, international semiconductor manufacturers and customers dependent on a steady supply of chips are watching with concern, while European politicians remain wary of technology leaks and national security threats.
Harsh statements and conflicting positions
The Chinese Ministry of Commerce accused the Netherlands of irresponsible behavior, asserting that the intervention caused turmoil in the global supply chain and that The Hague bears full responsibility for the consequences. Dutch Minister of Economic Affairs Vincent Karremans has repeatedly defended the decision, describing it as necessary, albeit unpleasant. Beijing characterized the Dutch stance as "perplexing," noting that talks between Wingtech and court-appointed custodians have yet to yield a resolution.
Why this case is critical
The conflict highlights the rising tension between China and Europe over the control of strategic technological assets. It demonstrates how national security concerns are increasingly driving government interventions in the semiconductor industry. With chips serving as a critical component for sectors ranging from automotive to defense, a prolonged disruption threatens to trigger a ripple effect across already strained global supply chains.
Negotiations between Wingtech and Nexperia's administrators are expected to continue, though without a clear timeline for a settlement. Diplomatic pressure from Beijing is anticipated to intensify, while the Netherlands appears determined to maintain a hard line on semiconductor security.
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