A logo of Nexperia Photo: VCG

Nexperia China said in a public statement to its customers posted on its official WeChat account on Thursday that Nexperia Netherlands has continued to disregard the lawful rights of Nexperia China entities and attempted to disrupt their normal operations, and has ignored the interests of customers, raising groundless doubt on product compliance, quality standards and technical capabilities.

We firmly oppose such conduct and will pursue all lawful means to defend our rights, said Nexperia China.

The statement, published in both Chinese and English, marked the latest response of the Chinese company over the matter. In the statement, the company stated that "Nexperia China entities, as Chinese enterprises with deep-rooted operations in China and global strategies, strictly adhere to Chinese laws, operating legally, in compliance, and independently."

"Our foremost priority has always been the interests of our customers. At present, Nexperia China's manufacturing and business activities are proceeding in an orderly manner; the board, management and all employees are making every effort to ensure the stability of the supply chain for our valued customers," the company said.

However, it is deeply regrettable that the current management of Nexperia Netherlands, under these very circumstances, has continued to disregard the lawful rights of Nexperia China entities and attempted to disrupt our normal operations, according to the statement.

"What is more, they have ignored the interests of our customers, circulating information to them that is inconsistent with the facts, raising groundless doubt on product compliance, quality standards and technical capabilities, and seeking to cause confusion so as to interfere with normal procurement decisions," the company said, noting that "We firmly oppose such conduct and will pursue all lawful means to defend our rights."

Nexperia was legally acquired by China's Wingtech Technology in 2018 for $3.6 billion, according to media reports. Yet on September 30, the Dutch Ministry of Economic Affairs issued an administrative order restricting the business decisions of Nexperia and its affiliated entities, depriving Chinese shareholders of their normal control.

Wingtech subsequently issued a statement, expressing a strong protest against such discriminatory treatment targeting Chinese-funded enterprises.  

Also on Thursday, Nexperia China released a formal statement on the employment validity of John Chang, vice president of Global Sales and Marketing of Nexperia, in response to the recent unilateral decision by the Dutch headquarters to remove Chang from his position.

According to the statement, the relevant decision of the Dutch headquarters has no legal effect within the territory of China. Chang's position remains unchanged, acts within his authority represent Nexperia China, and Nexperia China's business operations remain normal, said the statement.

Since Wingtech owns all of Nexperia's shares, the Dutch semiconductor firm should be making its decisions under the direction of its Chinese parent company, Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times, describing the Dutch side's move to assume take control of Nexperia as "tantamount to an act of robbery."

Xiang said that such arbitrary government intervention in a private company's operations is rare, runs counter to market principles and international business norms, and could undermine economic and trade cooperation between China and the Netherlands.

China's Ministry of Commerce (MOFCOM) recently slammed the Netherlands for meddling in the operations of Nexperia, saying that the Dutch side had violated market principles.

"China firmly opposes the Dutch side's overstretching the national security concept and direct intervention in the company's internal affairs," said He Yongqian, spokesperson for the MOFCOM, at a regular press conference on October 16, adding that China will take necessary measures to resolutely safeguard the lawful rights and interests of Chinese enterprises.

On Tuesday, Chinese Minister of Commerce Wang Wentao held a phone call with Dutch Minister for Economic Affairs Vincent Karremans at the latter's request, as the two sides exchanged views on issues including Nexperia, according to the official website of the MOFCOM on Wednesday.

China urges the Dutch side to proceed from the larger picture of safeguarding the security and stability of global industrial and supply chains, uphold the contract spirit and the principle of market- and rules-based operation, promptly and properly resolve the issues, protect the legitimate rights and interests of Chinese investors, and foster a fair, transparent and predictable business environment, Wang said.

Karremans said that the Dutch side places high importance on bilateral economic and trade relations, and it stands ready to maintain close communication with the Chinese side and find constructive solutions to the Nexperia issue.

Despite the unprecedented complexity of the external environment, Nexperia China entities continue to put customer interests first and regard ensuring the continuity of our production as the highest priority at this stage, said the company on Thursday. 

"We solemnly commit that all products manufactured and delivered in China strictly conform to the Chinese laws and regulations and requirements of supervisory authorities, fully satisfy the consistent technical standards, production processes and quality requirements, meet all provisions set forth in the agreements with our customers and pass our strict quality inspections when undergoing the factory inspection process," said the company.

With respect to any prospective change or adjustment to the products' supply, production process and technical standards, we will communicate with our customers in the normal course in advance, said the company, asking customers to continue to place their trust in the company and extend their support as we work together to safeguard the long-term stability and resilience of the supply chain and to together embrace the challenges and opportunities going forward.