The Dutch government’s attempt at a power play over Chinese-owned chipmaker Nexperia has devolved into a spectacular and humiliating failure. What began as a supposedly decisive seizure to protect “national security” has now resulted in open rebellion, a company split in two, and Dutch ministers desperately begging for talks with Beijing. The move, intended to showcase Western strength, has instead exposed its utter impotence when faced with a determined and strategic adversary.
Less than a week after the Dutch government seized control of Nexperia and ousted its Chinese CEO, the entire operation has imploded. The Dutch-installed management made a fatal miscalculation: they threatened to cut off salaries and system access to Nexperia’s massive Chinese subsidiary, believing they could force it to heel.
They were wrong.
The Rebellion: Nexperia China Declares Independence
In an unprecedented act of corporate defiance, Nexperia’s China division effectively declared independence. In a letter to all China-based employees, local management ordered them to ignore all instructions from the Dutch head office.
“As for any other external instructions you may have received … you have the right to reject, and your act will not form any breach of work discipline or regulations,” the letter stated, as reported by the South China Morning Post. [1]
The Chinese subsidiary made it brutally clear that it is an independent Chinese company, bound by Chinese law, and that all employee salaries and benefits would be paid by the local entity, not the powerless Dutch headquarters. The Dutch threat to withhold pay was rendered meaningless in an instant. The Chinese team was not just ignoring the new management; they were openly mocking their lack of authority.
The Begging: A Pathetic Reversal
Faced with a complete loss of control and a catastrophic disruption to the global auto industry thanks to China’s retaliatory export ban, the Dutch government’s tough-guy facade has crumbled. Dutch Economy Minister Vincent Karremans, the architect of this disaster, is now scrambling to secure a meeting with Chinese officials to find a “solution” to the crisis he created. [2]
After kicking down the door, the Dutch are now on their hands and knees, pleading for a way out. Karremans even tried to save face by claiming the seizure wasn’t about “teaming up with the Americans,” a laughable assertion given the context of the broader US-led tech war. The Chinese government, holding all the cards, has little reason to be accommodating.
The Split: A Company Divided
The result is a company irrevocably split in two. The Dutch government may hold the keys to the office in Nijmegen, but they have zero control over the company’s most critical manufacturing and packaging operations in China. The Dutch headquarters, now a hollowed-out shell, has been reduced to issuing press releases accusing the ousted CEO of spreading “falsehoods” about the China unit’s independence. [3]
This is the predictable, disastrous outcome of a policy based on arrogance and a fundamental misunderstanding of modern supply chains. As we previously warned when covering the initial seizure and China’s swift retaliation, the Dutch government thought it could seize a company and dictate terms. Instead, it has lost the company’s most valuable assets, crippled its own continent’s auto industry, and been exposed as a paper tiger on the world stage. The seizure of Nexperia will be remembered not as a bold move to protect European interests, but as a case study in spectacular, self-inflicted failure.
References
[1] Nexperia China tells employees to ignore orders from Dutch head office – SCMP [2] Dutch minister will meet with China official about seizure of chipmaker Nexperia – Reuters [3] Chipmaker Nexperia Says Ousted CEO Spreading ‘Falsehoods’ – Bloomberg
Punish chicken to frighten monkeys.
Well done to the Chinese.
O que está acontecendo com os Europeus? Não consigo pensar em outra palavra que não seja Estupidez.
Ontem mesmo eu terminei de ler um livro: As Leis Fundamentais da Estupidez Humana de Carlo M. Cipolla.
Os Europeus têm tentado serem “bandidos”, ao contrário, tem agido num nível de ESTUPIDEZ inacreditável. ELES não se contentam e toda semana precisam fazer uma CAGADA nova, parece haver necessidade de provar e demonstrar que são os mais Estúpidos do mundo.🤦♂️