Here’s a simple rule of thumb for the modern world: don’t get into a trade war or steal assets from a country that manufactures everything you need. It’s a lesson European leaders are now learning the hard way, as their continent’s automotive industry grinds to a halt.
The cause? A catastrophically stupid decision by the Dutch government to seize Nexperia, a Chinese-owned semiconductor company. In predictable retaliation, Beijing has slammed the door shut, banning the export of the 6 billion chips that Nexperia’s Chinese facilities package every single month. Now, with the predictable consequences raining down, Europe is crying.
The Self-Inflicted Wound
Just weeks after the Dutch government triumphantly announced it was taking control of Nexperia to “protect” it from its Chinese parent company, Wingtech, the predictable fallout has begun. China, viewing the move as the blatant theft it was, responded by cutting off the supply of critical semiconductors that are essential for modern vehicles.
The result is sheer panic across the global auto industry. The Alliance for Automotive Innovation, a group representing giants like General Motors, Toyota, Ford, and Volkswagen, issued a dire warning that the disruption could quickly halt U.S. auto production. John Bozzella, the group’s CEO, stated the obvious: “If the shipment of automotive chips doesn’t resume – quickly – it’s going to disrupt auto production in the U.S. and many other countries… It’s that significant.” [1]
In Europe, the situation is even more dire. The European automotive association, ACEA, has warned that without these specific chips, suppliers will be unable to produce essential car parts, leading to widespread production stoppages. Automakers like BMW and Volkswagen are reportedly in “crisis mode,” and the German Association of Electrical Engineering anticipates severe shortages within weeks. [2]
Begging for Forgiveness
And what is the response from the architects of this disaster? Outgoing Dutch Minister for Economic Affairs, Vincent Karremans, is now desperately seeking “talks” with Chinese officials to find a “solution.” [2] After committing an act of economic piracy, the Dutch government is now begging for mercy from the country it provoked. This pathetic reversal encapsulates the arrogance and shortsightedness of the entire affair.
Are European leaders this stupid? The evidence speaks for itself. They allowed themselves to be pressured by Washington into an act of economic aggression against a global manufacturing superpower. They stole a private company based on vague, unsubstantiated claims of protecting “crucial technological knowledge,” and in doing so, they have crippled one of their own most important industries.
China has made it clear it views the seizure as an abuse of national security and is standing firm. The message is simple and has been for years: treat us as an adversary, and you will pay the price. The Dutch government picked a fight it could never win, and now the entire European and American auto industry is left to suffer the consequences of their monumental foolishness.
References
[1] Automaker group warns Nexperia chip supply issue could quickly disrupt US production – Yahoo Autos [2] Dutch minister seeks talks with China over Nexperia export ban – IO+ (Innovation Origins)
The Dutch were the first Western nation to occupy Chinese territory.
They were also the first country to seize assets from Chinese companies under the pretext of endangering national security.
On top, the Dutch were also the originators of instigating Indonesia to massacre the local Chinese, cultural genocide, and forced assimilation.
This is what I describe the situation they poke Chinese in the eyes, and what they deserve is a kick in the groin.
As a long term observer of geopolitics involving China, it seems to me that there is a pattern.
(1) The West attacks
(2) China responds
(3) The West negotiates and backs down
(4) China ends the retaliation
(5) The West looks for something else to attack China on.
(6) The West finds the next target to attack.
(7) Steps 2 to 6 are repeated.
The West will find out the hard way that this current attack doesn’t work. So the Netherlands will have to sit down and talk.
In the meantime, I guess the US and Europe will be looking for the next target to attack.
This can go on forever since there is no penalty. It isn’t like Beijing will say there is a billion dollar penalty fee. You need to pay this fee before we would consider sitting down with you and talk.
So let’s wait and see what is the next target.
no penalty but consequences will emerge gradually. Industry will move out for the unstable supply chian in those countries.
China stop this pattern. Every country in the world will learn this.China will paralyze your semiconductor industry in the wet.
Once a pirate always a pirate.
The Dutch have not studied the Art of War!