Ministry of Commerce

Chinese Minister of Commerce Wang Wentao said on Wednesday that the global semiconductor supply chain remains highly fragile as the Dutch side has not lifted improper administrative and judicial interventions against Nexperia despite its suspension of the administrative order, and he urged the Netherlands to put forward constructive proposals to fundamentally address the concerns of all parties.

Wang made the remarks during a video conference with Katherina Reiche, Germany's economy and energy minister, during which they candidly exchanged views on the Nexperia issue, according to a statement released by the Ministry of Commerce (MOFCOM) on Thursday.

Wang said that the Dutch government's move to suspend its administrative order regarding semiconductor manufacturer Nexperia is a small step toward properly resolving the Nexperia issue. However, as the Dutch side has not lifted improper administrative and judicial interventions against the company, the global semiconductor supply chain remains highly fragile, and the root causes of chaos and turmoil persist, according to the statement.

Wang urged the Dutch side to show sincerity and take concrete actions, and effectively put forward constructive proposals to fundamentally address the concerns of all parties and create conditions for restoring the stability and smooth operation of global semiconductor industrial and supply chains.

Both sides agreed that enterprises are the main entity in resolving the Nexperia issue. Nexperia Netherlands and Nexperia China should promptly engage in constructive communication on their internal disputes to find an effective long-term solution, Wang said, according to the MOFCOM.

"The Netherlands' unreasonable intervention in an enterprise's internal affairs has severely harmed global semiconductor supply chains and affected downstream companies in other European countries such as Germany. Thus, it's necessary for the Dutch government to take swift action to completely resolve the problem rather than taking temporary measures," He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Thursday.

Recently, senior Chinese commerce officials held multiple talks with European officials regarding the Nexperia issue, which reflected the Chinese government's commitment to address bilateral trade frictions through dialogue, He Weiwen said.

Wang held a meeting via video link with European Commissioner for Trade and Economic Security Maros Sefcovic for in-depth exchanges on issues including the Nexperia case and other trade and investment matters on Wednesday, according to a statement published on the MOFCOM website.

In addition, government officials of China and the Netherlands held two rounds of consultations in Beijing regarding the Nexperia issue on November 18 and 19, during which the Dutch side offered to suspend the administrative order issued under the "Availability of Goods Act," according to the MOFCOM.

However, the suspension still falls short of addressing the root cause of the turmoil in the global semiconductor industrial and supply chain - the complete withdrawal of the administrative order, the MOFCOM said.

The MOFCOM stressed the erroneous ruling by the Dutch Enterprise Court, 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.

"China and the EU have great potential in semiconductor cooperation. However, the Netherlands' unreasonable move has dealt a blow to trust in the EU. If the Nexperia issue cannot be completely resolved, it would affect future semiconductor cooperation between China and the EU," Ma Jihua, a veteran telecom industry analyst, told the Global Times on Thursday.

In May, the MOFCOM held a meeting on deepening cooperation in the semiconductor sector between China and Europe.

The attendees included representatives of the China Semiconductor Industry Association and the European Union Chamber of Commerce in China, as well as more than 40 semiconductor enterprises from both sides. The meeting stressed that China and Europe occupy critical positions in the global semiconductor supply chain. Strengthening collaboration in this field aligns with the shared interests of both sides.