China's export ban on Nexperia chips based on incorrect assumptions, Dutch Min. says

The Chinese government acted based on incorrect assumptions when it imposed export restrictions on chip manufacturer Nexperia in response to the Dutch government intervening in the company’s operations, caretaker Minister Vincent Karremans (Economic Affairs) said before the weekly Cabinet meeting. The Chinese are “mixing up a few things,” he said.

Karremans recently invoked a rarely used law to prevent the technological knowledge and intellectual property of Nijmegen-based Nexperia from leaking to China. The Enterprise Chamber of the Amsterdam Court of Appeal independently temporarily sidelined Nexperia’s Chinese owner. China subsequently halted the export of products from the Chinese Nexperia factory until further notice.

According to Karremans, Beijing wrongly assumes that the Netherlands acted under American pressure. The United States has long had its sights set on Nexperia's Chinese parent company. American tech companies are no longer permitted to simply supply components or software to it.

"Well, I haven't spoken to a single American about it since I became Minister of Economic Affairs," said Karremans. "So none of that is true." He reiterated that the Cabinet decided to intervene in Nexperia "without any mandate or consultation" with other countries.

Karremans is in talks with the Chinese authorities to find a solution. He declined to comment on the content of those talks. He did say he was “optimistic about the outcome, given the significant global stakes.”

“This isn’t just important for the Netherlands or a company in Nijmegen. This is important for many players in the global economy,” Karremans said.

The European Automobile Manufacturers' Association (ACEA) previously warned that virtually all European car makers are affected by the Nexperia conflict. According to the organizations, current stocks of Nexperia chips will be exhausted in a few weeks. ACEA called the situation alarming and advocated for swift and pragmatic solutions from all countries involved.

Car production in the United States is also at risk of being affected by the conflict, the Alliance for Automotive Innovation (AAI) warned on Friday. The Washington-based industry association, which represents virtually all major global automakers such as General Motors, Ford, Volkswagen, and Toyota, also called for a swift resolution to the conflict.