China's commerce ministry accused the Netherlands on Tuesday of not working with Beijing to resolve the dispute surrounding the Dutch government's seizure of chipmaker Nexperia and warned of further supply chain disruptions as a result.
The Dutch government took control of Nexperia on September 30 due to concerns about its Chinese parent Wingtech (600745.SS). Beijing's warning of further disruptions comes as European automotive suppliers rush for exemptions to Chinese export restrictions on Nexperia products made in China that were imposed days after the Dutch government's seizure.
The commerce ministry said that while China has acted responsibly by offering these exemptions, the Netherlands has not responded in kind. It called on the Netherlands to "stop interfering" in Nexperia's internal affairs and work in a "constructive manner" with the Chinese government to reach a solution.
"The Dutch side persists in its unilateral course without taking concrete actions to resolve the issue, which will inevitably deepen the adverse impact on the global semiconductor supply chain," it said in a statement published on its official website.
"Neither China nor the global industry wishes to see this."
The Chinese commerce ministry's accusation of continued Dutch inaction on the dispute underscores the difficulty of the Netherlands and China agreeing to a long-term solution for the ownership of Nexperia, which makes large volumes of basic chips used in cars.
A spokesperson for the Dutch economic affairs ministry, which intervened in Nexperia's governance, told Reuters that talks between both governments were still underway.
"We remain in contact with the Chinese authorities and our international partners to work toward a constructive solution that is good for Nexperia and our economies," the spokesperson said on Tuesday.
While most of Nexperia's chips are produced in Europe, around 70% are packaged in China before distribution. The chip shortages caused by Beijing's export controls have threatened to halt assembly lines and lead to worker furloughs in Europe.
Industries dependent on Nexperia's chips are waiting for a political solution to the trade dispute after the White House announced last week, following talks between U.S. President Donald Trump and Chinese President Xi Jinping, that Beijing "would take appropriate measures to ensure the resumption of trade from Nexperia's facilities in China."
EU trade chief Maros Sefcovic said on Monday that there had been "progress" in talks on Nexperia involving the Dutch and Chinese governments, without elaborating further.
China's commerce ministry said on Tuesday it hoped the Netherlands would take into account bilateral ties and China-EU trade relations while negotiating a resolution of the dispute over Nexperia.
