Carmakers around the world are facing fresh uncertainty about their ability to continue production after China accused the Netherlands of failing to cooperate on a resolving a dispute over the seizure of the chipmaker Nexperia.
The Dutch government took control of the EU-based automotive chipmaker at the end of September because of concerns about its Chinese parent Wingtech Technology. In response, China halted exports of Nexperia products, restricting access to the vital components used in everything from airbags to central locking.
Carmakers including Volkswagen, Honda and Nissan have warned the geopolitical spat could halt production. Last week the European Automobile Manufacturers’ Association warned that some factory lines were “days away” from halting work.
European suppliers have since rushed for exemptions to Beijing’s restrictions, but the Chinese government has now accused the Netherlands of impeding progress on resolving the impasse.
In an online statement on Tuesday, Beijing’s commerce ministry called on the Dutch government to “stop interfering” in Nexperia’s internal affairs and urged it to work in a “constructive manner” to ease supply chain issues.
“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,” the ministry said. “Neither China nor the global industry wishes to see this.”
The statement cast doubt on recent statements from the White House and EU officials suggesting that a long-term resolution of the dispute could be reached soon.
Donald Trump weighed into the brewing trade war last week after talks with his Chinese counterpart, Xi Jinping, saying Beijing “would take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China”.
The Dutch government had invoked a cold war era law when it seized control of the chipmaker, ousting its chair, Zhang Xuezheng, in part because of fears that Wingtech could move intellectual property to another company it owned.
It also came after the US raised concerns about Nexperia’s management early in the summer. Court documents show the US Bureau of International Security and Nonproliferation told the Dutch foreign ministry in June: “The fact that the company’s CEO is still the same Chinese owner is problematic … It is almost certain that the CEO will have to be replaced.”
The dispute escalated last week when Nexperia told customers all supplies to its Chinese factory had been suspended. Although Nexperia’s chips are manufactured within Europe, about 70% are packaged in China before distribution.
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A spokesperson for the Dutch economic affairs ministry told Reuters that talks between both governments were still under way: “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 dispute adds to the turmoil UK auto manufacturers are facing after a cyber-attack forced Jaguar Land Rover, Britain’s largest carmaker, to halt production in September.
JLR has resumed production, supporting a small boost to UK factories in October. Experts have estimated the attack cost the UK economy about £1.9bn, affecting as many as 5,000 organisations across the company’s supply chain.
