Recently, the Dutch government imposed a compulsory takeover measure on the Chinese company Zhou Tai Technologies, freezing assets and trying to replace the Chinese CEO.
This incident has not only sparked a huge wave in the field of international economic and trade, but also directly sparked strong counter-reaction by the Chinese government.
Behind the incident, the United States '"penetration rules" provided a legal basis, and the European Union had to intervene in an attempt to resolve this crisis, which could have far-reaching impacts on global supply chains.
As a global leading company in the field of automotive power semiconductors, Nexperia was on the verge of bankruptcy before being acquired by a Chinese company. It was Wingtech Technology that revitalized this company through capital and technology injection.
The takeover not only saved thousands of jobs in the Netherlands, but also created taxes for the Netherlands.
However, the Dutch government, citing the Supply of Materials Act on the grounds of "national security", imposed a compulsory takeover of Anselm Semiconductors, which undoubtedly undermined its reputation for an open and transparent business environment.
Even more remarkable is the fact that America’s “penetration rules” play an important role in this.
The rule would extend the scope of regulation to subsidiaries with more than 50 percent stake in entities listed, apparently a legal design for Chinese enterprises.
The Dutch government has taken action with the strategic support of the United States to try to weaken China’s competitiveness in the global semiconductor field.
China's Ministry of Commerce has quickly imposed export controls on the Anchor Semiconductor, banning it from exporting specific components from China.This measure has directly impacted the Anchor Semiconductor's production capacity and posed a serious threat to its downstream customers, the European automotive manufacturing industry.
At the same time, China has also strengthened export controls on rare earths, which are important raw materials for chip manufacturing.
These measures not only cost the Netherlands, but also pushed the European automotive industry to the risk of a supply chain breakdown.
European auto giants such as BMW and Volkswagen rely heavily on AXA Semiconductor, and the European Automobile Manufacturers Association even warned that this may lead to serious consequences of stopping production of European auto production lines.
In the face of the crisis, the Dutch government had to adjust its strategy.
On October 21st, Dutch Minister of Economy Kalemans took the initiative to call Chinese Minister of Commerce Wang Wentao, expressing his willingness to find a "constructive plan" and stressing that he attached great importance to Sino-Dutch economic and trade relations.
At the same time, the EU is also intervening urgently in mediation.
European Commission Trade and Economic Security Commissioner Shevcovic said in a video meeting with China that in addition to hoping that China will speed up the approval of European companies 'applications on rare earths, it will also actively assist the Netherlands and China in strengthening communication when necessary and find solutions as soon as possible. Measures to jointly maintain the stability of the global production and supply chain.
This statement shows that the EU hopes to calm down the situation quickly and avoid further damage to the broader China-EU economic and trade relations.
The two sides agreed to hold a "upgraded" China-Europe Export Control Dialogue Mechanism meeting in Brussels as soon as possible.
However, the Netherlands 'strategic adjustment does not represent a fundamental change in its position.
Moreover, it is a short-term compromise, attempting to find a way out of the situation where the consequences of the impasse cannot be borne. Minister Wang Wang Tao made it clear that China is firmly opposed to the generalization of the concept of “national security” and hopes that the European side urges the Netherlands to adhere to the spirit of the treaty and the market principles. From the Chinese perspective, the event is not only a necessary measure to safeguard its own interests, but also an opportunity to urge Europe to return to fair competition and open cooperation.
This game is not only related to the economic and trade relations between China and the Netherlands, but also has a profound impact on the stability of global supply chains. The ANSE Semiconductor incident highlights China's important position in the global semiconductor and rare earth supply chain, and also makes the EU realize that how to find a balance between safeguarding the interests of member states and stabilizing China-EU economic and trade relations will become a major challenge.
In the future, the game between China and the Netherlands and the EU will continue.Can the Netherlands truly return to the spirit of the treaty?Can the EU find a balance between China and the United States?The answers to these questions deserve our continued attention.