China patient in Nexperia row – but escalation seen as possible as talks loom

As China and the Netherlands prepare to hold talks next week over the Nexperia chipmaker dispute, Beijing has the patience to resolve the issue through multiple rounds of negotiations to ensure the case remains isolated, analysts said.

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On Thursday, Dutch Economy Minister Vincent Karremans said a senior government delegation would visit Beijing “to continue our efforts to find a mutually agreeable solution”.

The Dutch government took the unusual step of seizing control of Nexperia from its Chinese owners on September 30, citing national security concerns and invoking a law that had been dormant since 1952. Dutch court filings suggest this was done under US pressure, with Washington announcing its expanded trade blacklist the day before.

Beijing responded by imposing export controls on certain components made by Nexperia’s China unit, threatening global carmaker supply chains.

After the latest round of US-China trade talks, Beijing agreed to exempt compliant orders for chips produced at Nexperia’s China facilities from export bans. Washington also suspended its new entity list rules for a year.

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However, the Dutch chipmaker’s European fabrication facilities have yet to resume wafer supplies to Nexperia’s China unit since last month’s suspension.

  

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