Netherlands Suspends Nexperia Takeover Amid China Talks

Published: 21 November 2025 Friday. The English Chronicle Desk. The English Chronicle Online

The Netherlands has suspended its bid to effectively take control of chipmaker Nexperia, signaling a breakthrough in a tense standoff with China that had disrupted global automotive supply chains. The decision comes after “constructive” discussions between Dutch and Chinese officials and consultations with European and international partners, raising hopes for a more stable and cooperative framework for critical technology governance.

Dutch Economic Affairs Minister Vincent Karremans announced on Wednesday that the government had suspended an order that had prevented Nexperia from making major corporate decisions without governmental approval. In a statement, Karremans said, “We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world. We see this as a show of goodwill. We will continue to engage in constructive dialogue with the Chinese authorities in the period ahead.”

China’s Ministry of Commerce welcomed the announcement, calling it a “first step” toward resolving the issue. However, it urged the Netherlands to fully revoke the order, arguing that it was the “root cause” of previous supply chain disruptions. Chinese officials also criticized a Dutch court ruling last month that forced out Nexperia’s Chinese CEO, Zhang Xuezheng, citing alleged mismanagement, describing the ruling as “erroneous.” Despite the suspension of the Dutch order, the court decision—which placed almost all voting rights of Nexperia shares under an independent administrator—remains in effect.

Economics experts have framed the episode as indicative of Europe’s ongoing challenge in managing China’s participation in critical global supply chains. Jo Van Biesebroeck, a professor of economics at KU Leuven, described Europe’s strategy as “a work in progress.” He told Al Jazeera, “The Nexperia action was triggered by specific actions, and the main worry now seems to be diminished with the personnel change at Nexperia. The Dutch government made clear how far it is willing to go, and it seems like China has met them halfway.”

Nexperia, a semiconductor manufacturer owned by Jiaxing-based Wingtech, became the focal point of international concern in late September when the Dutch government assumed effective control of the company. Authorities cited the need to secure chip supplies amid fears that CEO Zhang might relocate manufacturing operations and intellectual property to China. This move closely followed warnings from the United States that Nexperia could be added to its list of sanctioned companies unless the CEO was replaced, though Dutch officials insist that their decision was based on domestic economic considerations rather than pressure from Washington.

Beijing condemned the Dutch intervention under the Cold War-era Goods Availability Act as an act of “improper interference” in corporate affairs. In response, China temporarily blocked exports of certain Nexperia products manufactured on its soil, contributing to disruptions in automotive production. Japanese automakers Honda and Nissan were forced to reduce output, while Germany’s Mercedes-Benz announced short-term measures to secure chip supplies.

The suspension of the Dutch takeover order comes in the context of broader efforts to stabilize international semiconductor supply chains. Chinese authorities had lifted export restrictions on Nexperia earlier this month as part of a trade truce agreed upon by US President Donald Trump and Chinese leader Xi Jinping in South Korea. The recent suspension by the Netherlands signals a mutual willingness to resolve disputes through diplomacy rather than unilateral action, a development welcomed by industry stakeholders.

Experts note that semiconductors are at the heart of global economic and technological competition. From automotive manufacturing to consumer electronics, chips are essential components of modern economies, making supply disruptions a serious concern. The Nexperia case underscores the geopolitical sensitivity of critical technology firms operating in a globalized market. As Van Biesebroeck observes, “Europe must carefully balance national security concerns, industrial competitiveness, and international trade obligations. The Nexperia episode illustrates how quickly a corporate governance issue can become a matter of international diplomacy.”

The Dutch government’s intervention and subsequent suspension reflect a delicate balancing act. Authorities sought to safeguard domestic and European chip supplies without escalating tensions with China or jeopardizing trade relations. Meanwhile, China’s call for a complete revocation of the order demonstrates Beijing’s insistence on protecting the interests of its corporate nationals and maintaining its role as a key player in global technology supply chains.

The episode has highlighted vulnerabilities in the global semiconductor ecosystem. Automotive supply chains, in particular, have proven susceptible to disruptions arising from geopolitical conflicts, corporate governance disputes, and regulatory interventions. Companies such as Honda, Nissan, and Mercedes-Benz have been forced to implement contingency plans to maintain production, reflecting the critical importance of semiconductors in high-tech manufacturing and international trade.

The Nexperia case also offers insights into Europe’s evolving strategy toward China. As governments seek to ensure access to essential technology while managing political and economic risks, diplomatic engagement becomes as crucial as regulatory oversight. The Dutch decision to suspend the order suggests a pragmatic approach: maintaining leverage over critical supply chains while fostering cooperation to prevent further disruptions.

Looking ahead, the suspension opens the door for continued dialogue between Dutch and Chinese authorities, with European and global partners closely monitoring developments. While the court ruling on Nexperia’s corporate governance remains in effect, the suspension represents a tentative step toward normalizing relations and stabilizing chip supply. Stakeholders in the automotive and technology sectors are optimistic that the combination of regulatory oversight and diplomatic engagement will mitigate future disruptions.

In summary, the Netherlands’ suspension of its takeover order for Nexperia marks a significant step in resolving tensions with China. By combining regulatory action with constructive dialogue, both countries appear committed to ensuring a steady flow of critical semiconductors to Europe and beyond. The episode underscores the intricate interplay between national security, corporate governance, and global trade, offering valuable lessons for policymakers navigating the increasingly interconnected and politically sensitive world of high-tech supply chains.