By Eduardo Baptista
BEIJING (Reuters) -China hopes Germany will urge the Dutch government to revoke its seizure of chipmaker Nexperia, Chinese Commerce Minister Wang Wentao said on Tuesday during a call with his German counterpart.
Chinese-owned, Netherlands-based Nexperia, which makes billions of chips for cars and other electronics, has over the past month been at the centre of a global supply chain crisis, triggered by Beijing imposing export controls on the company’s China-made products in response to the Dutch seizure.
Beijing has in the past week cranked up the pressure on the Netherlands and the European Union by repeatedly accusing the Dutch government of being uncompromising even as it loosened export curbs, as well as calling on Brussels to lobby for a revoking of the company’s seizure.
But Wang’s remarks, published on the Chinese commerce ministry’s website, are the first time Beijing has publicly asked another country to push the Netherlands to reverse its September 30 decision to take control of Nexperia.
OWNERSHIP DISPUTE
“(China) hopes Germany will play an active role in urging the Dutch government to take practical steps as soon as possible to correct its erroneous practices, revoke the relevant measures, and promote an early resolution of the issue,” Wang told Katherina Reiche, Germany’s minister for Economic Affairs and Energy.
Reiche’s ministry said it would not comment on bilateral talks between China and the Netherlands, while adding it was in close contact with its Dutch partners.
It said Reiche emphasised to Wentao the importance of good and functioning economic relations between Germany and China, but also pointed to growing imbalances in bilateral trade.
Reiche “also made it clear that the new, broad-based Chinese export controls, including those on rare earths, do not comply with international standards and would have a significant impact on Germany as a business location,” her ministry said.
The Dutch government justified the seizure at the time by saying that Nexperia’s Chinese owner Wingtech was threatening European economic security in planning to move Europe-based production to China.
Beijing has described the Dutch action as improper interference in a Chinese company’s internal affairs and the root cause of the supply chain disruptions that ensued.
Following Beijing’s export controls last month, the sudden shortage of Nexperia chips, mostly packaged in China, hit the production of German carmakers and automotive suppliers, prompting Germany to lobby China on behalf of these firms.