Why The Hague took control of the Chinese-owned chip producer Nexperia

The Dutch government took de facto control of the chip producer Nexperia, headquartered in the Netherlands but owned by the Chinese Wingtech Technology, for reasons of national security, more specifically access to crucial technologies.

This was made known by the executive itself, in a statement released on Sunday evening justifying a measure that had in fact already been taken on 30 September: 'The decision,' it says, 'aims to prevent a situation in which goods produced by Nexperia might not be available in an emergency. The legal justification is in fact a seventy-year-old law, the Goods Availability Act, passed at the start of the Cold War but never used until now, under which the government can block or overturn a company's internal deliberations if they are considered harmful to Dutch or European interests. And, according to the Dutch government, Nexperia has recently shown 'signs of serious governance failures, which pose a threat to the continuity and safeguarding of crucial expertise and technological capabilities in Dutch and European territory.

It is no coincidence that the European Commission also immediately expressed its support for the measure, endorsing The Hague. ''Protecting technological security,'' spokesman Olof Gill explained, ''is a priority of the EU Security Strategy. In the future, we will continue to cooperate with the Dutch authorities as we evaluate possible next steps.

Concretely, Nexperia, which produces semiconductors used in cars, telephones and solar panels, will now have to apply for permission from the ministry for major or structural changes in management. By order of the Amsterdam court, the office of the group's Chinese chairman, Zhang Xuezheng, has already been suspended,

Wingtech, which had acquired Nexperia - once part of the Philips group - for €3.1 billion in 2018, reacted harshly, denouncing "excessive interference dictated by geopolitical biases" and announcing that it will seek "support from the relevant government departments" in Beijing. The company - which ier lost 10% on the Shanghai Stock Exchange - also pre-announced international legal action to defend its interests and those of its shareholders. From Beijing, Foreign Ministry spokesman Lin Jian reiterated that China "opposes the abuse of the concept of national security and the politicisation of economic and trade issues", calling on European countries to "respect market principles".