Technology company Nexperia — owned by the Chinese Wingtech — is not allowed to make any decisions without permission from the Ministry of Economic Affairs. The Netherlands has appointed “a non-Chinese administrator.”
Production at Nexperia will continue, but strategic decisions are under direct supervision by the Dutch government until further notice. With this, The Hague aims to prevent the transfer of crucial technologies into China’s hands.
Wingtech responded strongly to the decision, calling the intervention “excessive interference” and “geopolitically motivated.” The company stated in Chinese media that it is considering legal action and seeking support from the Chinese government.
Promotion
Reports about the Dutch intervention triggered an immediate stock market reaction in Shanghai, where Wingtech’s shares dropped by the maximum allowed ten percent on Monday. Investors fear that the measure will further escalate international trade tensions.
Wingtech was already placed on the so-called entity list by the United States in December 2024 due to national security concerns. Companies on this list are prohibited from receiving American technology without a special license from US authorities.
The issue heightens tensions between the Netherlands, China, and the United States over control of advanced chip production. Both The Hague and Washington are trying to prevent China from accessing strategic knowledge in the semiconductor sector.
According to the Dutch Ministry of Economic Affairs, there were “acute signals of serious managerial shortcomings” within Nexperia that could lead to a loss of technological knowledge.
On October 6, the Amsterdam Enterprise Chamber suspended Nexperia CEO Zhang Xuezheng from his position. He is temporarily replaced by an independent, non-Chinese director with decisive voting rights.