Wednesday, January 7, 2026

China–Netherlands Technology Dispute over Nexperia Enters a Negotiated Phase

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Diplomat Magazine
Diplomat Magazinehttp://www.diplomatmagazine.eu
DIPLOMAT MAGAZINE “For diplomats, by diplomats” Reaching out the world from the European Union First diplomatic publication based in The Netherlands. Founded by members of the diplomatic corps on June 19th, 2013. "Diplomat Magazine is inspiring diplomats, civil servants and academics to contribute to a free flow of ideas through an extremely rich diplomatic life, full of exclusive events and cultural exchanges, as well as by exposing profound ideas and political debates in our printed and online editions." Dr. Mayelinne De Lara, Publisher

Tensions between China and the Netherlands have escalated significantly following the Dutch government’s intervention in Nexperia, a major semiconductor manufacturer headquartered in Nijmegen and majority-owned by the Chinese technology group Wingtech. The dispute has become one of the most notable flashpoints in the broader global competition over technology supply chains.

In September 2025, the Netherlands invoked the rarely used Goods Availability Act to place Nexperia under temporary state supervision, citing national security concerns and the need to safeguard essential semiconductor production capabilities on Dutch and European soil. The government argued that actions by the company’s Chinese leadership risked the transfer of technology and intellectual property out of Europe, potentially weakening critical supply chains for industries such as automotive and consumer electronics. (Government.nl)

China reacted sharply. Beijing condemned the Dutch intervention as a violation of international norms and “improper interference” in corporate affairs, accusing the Netherlands of disrupting the global semiconductor supply chain. In response, Chinese authorities briefly blocked exports of Nexperia chips manufactured in China — components widely used in automobiles and everyday electronics — aggravating concerns among European manufacturers about production slowdowns. (Reuters)

The export ban and resulting supply disruptions contributed to production challenges for auto makers across Europe and Asia, with industry players warning of material shortages and operational strain. China has repeatedly urged the Netherlands to reverse its actions and remove obstacles to stabilizing the global chip market. (Reuters)

In mid-November 2025, the Dutch government suspended its state control of Nexperia as part of diplomatic efforts to ease tensions and foster constructive dialogue with Chinese authorities. Dutch officials characterized the suspension as a goodwill gesture, while affirming that safeguards remain in place should security concerns re-emerge. The Netherlands continues to engage in negotiations with Beijing and coordinate with European partners, seeking a durable resolution that protects both economic security and supply continuity. (Anadolu Ajansı)

The Nexperia dispute underscores the strategic importance of semiconductors in international geopolitics. It reflects growing global competition over technology governance, investment security, and supply chain resilience — issues that are likely to persist as countries balance economic openness with national security imperatives.

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