Q: Could you share the latest developments in the recent consultations between China and the Netherlands regarding the Nexperia issue?

A: On November 18 and 19, government officials of China and the Netherlands held two rounds of face-to-face talks in Beijing on the Nexperia issue. During the consultations, the Chinese side reiterated that the root cause of the current disruption in the global semiconductor industrial and supply chains lies with the Dutch side, urging the Dutch side to take concrete actions to swiftly and effectively push the resolution of the Nexperia issue at an early date and restore the security and stability of the global semiconductor industrial and supply chains. The Dutch side has proactively proposed suspending the Dutch economy minister’s administrative order under the Goods Availability Act.

The Chinese side welcomes the move, seeing it as a first step in the right direction toward resolving the issue. However, the suspension still falls short of addressing the root cause of the turmoil in the global semiconductor industrial and supply chains—the complete withdrawal of the administrative order. Moreover, the erroneous ruling by the Enterprise Chamber of the Amsterdam Court of Appeal, pushed by the Dutch Ministry of Economic Affairs and depriving Wingtech of control over Nexperia (Netherlands), remains a key obstacle to resolving the matter. China hopes the Dutch side will continue to demonstrate a genuine willingness to cooperate and put forward a truly constructive solution. The two sides agreed that administrative intervention should be removed and they should support and encourage businesses to resolve internal disputes through consultations in accordance with the law. This would protect investors’ legitimate rights and interests and create more favorable conditions for restoring the security and stability of the global semiconductor industrial and supply chains.