China has lashed out at the Netherlands following the Dutch government’s takeover of Chinese-owned semiconductor manufacturer Nexperia, calling the move an act of “piracy” and warning of possible retaliatory measures, including export restrictions on rare earths vital to global technology supply chains.
The escalating war of words follows a series of rapid developments linking U.S. export controls, Dutch intervention, and mounting scrutiny of Chinese investments in Europe’s high-tech sector.
On September 30, the Dutch government announced that it had taken control of Nexperia, invoking emergency powers under the Goods Availability Act. The Ministry of Economic Affairs said the decision was necessary due to “serious governance shortcomings” at the company and to ensure that its semiconductor products remained available “in the event of an emergency.”
“The decision aims to prevent a situation in which the goods produced by Nexperia would become unavailable,” the Minister of Economic Affairs said in a statement. “The company’s regular production process can continue.”
The move came just one day after the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an interim rule extending its Entity List and Military End-User List to include affiliates of sanctioned firms. Under the rule, any company at least 50% owned by a listed entity automatically inherits the same trade restrictions.
Nexperia’s parent company, Wingtech Technology, was placed on the U.S. Entity List in December 2023 for its alleged ties to China’s military-industrial base.
In a press release issued on October 14, Nexperia said that while the BIS had not explicitly named it, the new U.S. rule meant the company was “affected due to its status as a wholly owned subsidiary of Wingtech.” The company also revealed that it and its subcontractors were now barred by the Chinese Ministry of Commerce from exporting certain finished components and sub-assemblies manufactured in China.
Beijing reacted furiously to the Dutch intervention. In an editorial, China’s Global Times, a state-owned newspaper known for its nationalist tone, accused the Netherlands of “seizing the capital and technological achievements that Chinese companies have built up over many years.”
“Many have described such actions as 21st-century piracy,” the editorial declared. “The Dutch government’s actions against Nexperia are extremely egregious, going far beyond normal commercial regulation and carrying blatant political coercion and discriminatory overtones.”
The article went on to suggest that the Netherlands was reviving its colonial instincts. “Some have recalled the dark chapters of the Netherlands’ history,” it said, referencing the Dutch colonial empire that spanned parts of Indonesia, Malaysia, Taiwan, Sri Lanka, and Japan during the 17th century. “A few Western countries now treat ‘national security’ as a privateering license — a reflection of colonial genes awakening in the 21st century.”
Shen Yi, a professor of international politics at Fudan University, echoed this sentiment in an interview with ThePaper.cn, saying, “The Netherlands still sees itself as the ‘coach driver of the sea,’ but it is behaving more like a pirate in the modern economy.”
He warned that once China retaliates, the Netherlands “will find itself becoming a chicken for slaughter,” noting the country’s role as Europe’s second-largest poultry exporter after Poland.
Chinese commentators and analysts widely view the Dutch move as coordinated with Washington’s tightening of semiconductor export controls.
“The Dutch action was clearly synchronized with the latest U.S. restrictions,” wrote a Guangdong-based columnist. “China still holds several strong cards — from its dominance in rare earth production to its large market in new energy and industrial machinery. If China retaliates, Dutch companies will struggle to withstand the pressure.”
China currently accounts for about 70% of global rare earths production — materials essential for producing chips, magnets, and electric vehicle motors. Beijing has used rare earth export curbs before, including in disputes with Japan and the United States, and may consider similar measures against the Netherlands.
The Nexperia saga has been years in the making. Since its US$3.6 billion acquisition by Wingtech Technology in 2018, the Dutch-based semiconductor firm has faced increasing political scrutiny across Europe.
In 2022, the UK government forced Nexperia to sell its Newport wafer plant, citing national security risks. The following year, Germany barred the company from accessing public funding for battery-efficiency research, again invoking security concerns.
Wingtech’s Chief Financial Officer Zhang Yanru said during a shareholder meeting on October 15 that the company had tried to cooperate with European regulators. “To navigate increasing scrutiny, Nexperia established a government relations office in late 2023 and hired a diplomatic expert to liaise with Dutch officials on compliance and governance,” she said.
However, she added that Dutch authorities demanded the establishment of a supervisory board with veto powers over more than 20 major business decisions — including those involving intellectual property, technology transfer, and investment plans. “Wingtech rejected this suggestion,” Zhang said, adding that Dutch officials also pressed the company to sell part of its equity to European investors and to seek a future EU public listing in the name of “transparency.”
Zhang said Wingtech was open to exploring such options but faced “complex procedural requirements and political sensitivities.”
According to Dutch court filings released on October 14, U.S. officials informed the Dutch government that Nexperia’s then-CEO Zhang Xuezhang would have to be replaced if the company wanted any exemption from U.S. restrictions.
Zhang was suspended by the Dutch Enterprise Chamber on October 7, and the company’s Chief Financial Officer, Stefan Tilger, was appointed interim CEO.
These filings, Chinese officials say, confirm Washington’s hand in the episode. On October 16, Chinese Commerce Ministry spokesperson He Yongqian said the Dutch documents showed that U.S. “penetrating rules” were the original cause of harm to Chinese enterprises.
She urged the Netherlands to adopt an “independent and autonomous stance” in handling the case, calling the takeover a dangerous precedent for global investment stability.
The Nexperia case highlights the increasing entanglement of European industrial policy with U.S.-China strategic rivalry. The Netherlands, home to ASML, the world’s sole supplier of advanced lithography machines essential to cutting-edge chipmaking, has already come under heavy U.S. pressure to limit exports of semiconductor technology to China.
By seizing Nexperia, The Hague may have aligned more closely with Washington’s agenda — but at the cost of further inflaming tensions with Beijing.
Chinese state media warn that retaliation could be imminent, potentially involving restrictions on critical materials or curbs on European investment access in China.
