In a dramatic escalation of the ongoing tech war, Beijing has fired back at the Netherlands, imposing an export ban on chipmaker Nexperia just days after the Dutch government seized control of the Chinese-owned company. The move, which was reported by Bloomberg, signals a new and more confrontational phase in the conflict, transforming a one-sided act of economic aggression by the Dutch into a full-blown diplomatic crisis.
This retaliation follows the Dutch government’s unprecedented seizure of Nexperia, a move we previously condemned as “daylight robbery.” The Hague invoked emergency powers to strip Nexperia’s parent company, Wingtech Technology, of its control, citing vague and unsubstantiated “national security” concerns. Now, China is demonstrating that it will not stand idly by while its companies are expropriated by Western governments.
The Chickens Come Home to Roost
The export ban, which took effect on October 4th, prohibits Nexperia’s Chinese subsidiaries and subcontractors from exporting certain finished and semi-finished products. This will have a significant impact on the company’s global operations, as its factory in Dongguan, China, produces over 50 billion chips annually. While Nexperia is now desperately trying to negotiate an exemption, the message from Beijing is clear: if you attack our companies, there will be consequences.
The Dutch government’s actions, which included the suspension of Nexperia’s CEO Zhang Xuezheng, were justified as necessary to protect “Dutch and European economic security.” But as we argued in our previous article, this is nothing more than a flimsy pretext for economic nationalism. The Netherlands has provided no credible evidence of any wrongdoing by Nexperia or Wingtech, and its actions represent a blatant violation of international business norms.
A Pattern of Hypocrisy
The European Commission’s response has been predictably weak, with a spokesperson stating that they are “in close contact with the Dutch authorities.” This is the same European Union that preaches the gospel of free trade and the rule of law, yet turns a blind eye when one of its member states engages in what can only be described as state-sanctioned theft. The hypocrisy is stunning.
This entire episode exposes the West’s double standards when it comes to China. While Western companies operate freely in China, Chinese companies in the West are subjected to constant scrutiny, suspicion, and now, outright confiscation. The seizure of Nexperia, and China’s subsequent retaliation, is a dangerous escalation that threatens to unravel the global economic order. The Dutch government, in its arrogance, may have just fired the first shot in a trade war that nobody can win.
