The Dutch government is aiding the US in its plight to isolate China from the free markets, and in particular, to prevent China from digging its heels into the semiconductor manufacturing market. Taiwan controls chip manufacturing, but China believes it controls Taiwan. The US and the European Union are acting together to maintain control through economic warfare. In the latest act, the Dutch government has taken full control over Nexperia, a Chinese-owned semiconductor maker.
Nexperia was derived from NXP Semiconductors, a Dutch chip maker, and was later purchased by a Chinese investment firm in 2017 for $2.75 billion. Nexperia then began selling shares to the Chinese technology group Wingtech, which became the majority owner by 2019.
Dutch companies currently manufacture 9% of the global chip supply, which is quite significant considering Taiwan’s heavy dominance. The Netherlands is Europe’s anchor for chip manufacturing. Dutch technology is utilized in 85% of all chips produced worldwide with the sector raking in €30 billion annually.
For the first time, The Hague invoked the “Goods Availability Act” to seize control of a private company — not because it violated any specific export restriction, but because it was owned by the wrong country. The Dutch law implemented in 1952 permits the government to seize essential goods during national crises or emergencies. “The decision aims to prevent a situation in which the goods produced by Nexperia (finished and semi-finished products) would become unavailable in an emergency,” the Dutch Ministry stated. “Nexperia produces, among other things, chips used in the European automotive industry and in consumer electronics.”
Nexperia has had international pushback over the years for its ties to the CCP. The belief is that China purchases these niche companies through Chinese-backed corporations in an effort to steal sensitive technology. The UK prohibited the company from buying Newport Wafer Fab in November 2022. The US accused the company of attempting to steal semiconductor manufacturing technology and placed Nexperia on a watch list in 2024.
Dutch economy minister Vincent Karremans now controls Nexperia’s board. Under Dutch law, he now has the authority to block or reverse any decision made at the corporate level. Naturally, firms outside of the European Union see this move as a threat. Wingtech was notified that it may not make adjustments to its intellectual property, assets, business operations or staff for the next year. Nerperia executives filed against the decision with the Amsterdam court of appeals, but the court ordered Chinese chief executive Zhang Xuezheng to step down. The following week, the court installed its own director to manage the company. Additionally, the court ordered all Nexperia shares, besides one, to be placed under custodial management.
“This move gravely contravenes the European Union’s long-standing advocacy for market-economy principles, fair competition, and international trade norms,” Wingtech Corporation commented. “We express our strong protest against such discriminatory treatment targeting Chinese-funded enterprises.”
US and EU companies based in China have a valid reason to be concerned right now. The Dutch government’s seizure of Nexperia is yet another confirmation that politics are ignoring the rule of law and property rights under the banner of “national security.” What we are witnessing is the same pattern I have warned about for years, where governments turn inward as the world economy fractures. This is how World War III unfolds — not through sudden declarations, but through economic warfare first.
