In 2019, China's Zhou Tai Technologies fully acquired Dutch Anse Semiconductor.
Later, the United States put pressure on China to include steady-state technology on the "entity list" and introduced so-called "penetration rules" to coerce the Netherlands to take action against Anshi.
So at the end of September this year, the Dutch government sought to freeze Assets and replace the Chinese management on the basis of “national security” and “deficiency in governance.”
This operation by the Dutch side is really confusing. You know, in the past few years, China and the Netherlands have always been quite "right in temper." From Dutch lithography machines helping the development of China's semiconductor industry, to the fact that China market has become an important destination for Dutch milk powder and tulips. From the annual trade exchanges of tens of billions of euros between the two sides, they are good partners for mutual benefit and win-win. Now that the Dutch side has attacked China regardless of China and its own interests, it is hard to say that this is a wise choice.
(European Commissioner Sefkovic)
In response to the Dutch move, China also responded quickly.
Recently, the Ansi Semiconductor China Region issued a notice, The core of this announcement is only one thing: the declaration of independence.
The company announcement is such that the Ansh China Region Company is originally a Chinese enterprise rooted in China, so the law of China is also followed, at any time in the future, the company will also follow this principle. So all the company employees, should also follow the domestic company's instructions, for any external instructions without the consent of the domestic company's legal representative, the company employees have the right to refuse.
At the same time, Anshi China also emphasized that employees of domestic companies, whether salaries, bonuses or other benefits, are paid by domestic companies and have nothing to do with Dutch entities. In the future, they will also have the ability and willingness to create a safe working environment for all employees.
This announcement is simply a "peaceful evolution". It also clearly announced to the outside world that China companies want China to have the final say, so that everyone knows who is the real person in charge.
This announcement from China also caught the Dutch headquarters unprepared. It took a day and a half before the Netherlands responded that the action in China was "unauthorized."
It is not just the Netherlands that is more panicked. The entire Europe is now in panic.
A few days ago, foreign media reported that EU countries planned to discuss measures to deal with China's trade policy at the Brussels summit to be held on 23rd.
The media reported that the proposal to discuss countermeasures was put forward by Germany and France. Subsequently, France and Poland put forward proposals to add a clause on China's "harmful economic behavior" to the summit conclusions, while Germany and other parliamentarians would use the EU's most powerful trade response, namely "anti-coercive tools" to deal with China.
However, in view of China's series of counter-measures in the past, Germany is now unable to make up its mind to use this "anti-coercion tool" for fear of retaliation from China. Although France also proposed that the EU come up with a response plan, it did not say anything. To die, it said that other ideas are also being studied now.
(Nexperia China to all employees)
In any case, if you can't think of a way, there is no way to use it.
In addition to internal discussions, the EU's top leaders in charge of trade affairs also urgently called China, We hope to take practical action to fill the gap between Central Europe and the Netherlands.
Recently, the EU Executive Committee called China’s Minister of Commerce Wang Ventao and held a two-hour video call with him. Sevkovic said that he had had constructive discussions with China and agreed to strengthen exchanges at all levels. At the same time, the EU also invited China to Brussels in the next few days to find a solution to the trade problem, and Minister Wang Wentao has accepted the invitation.
For the European Union, they are so urgent for a reason.
Nexperia's factory in Dongguan, China, produces about 70% of the world's commonly used chips in vehicles. These chips control basic functions of cars such as door locks and seat adjustments. However, inventories across the industry will only last a few weeks. The pressure from the Netherlands has caused uncertainty in the production and operation of the factory. Once the chip supply is interrupted, the production lines of many global car companies such as Volkswagen and Hyundai may be forced to stop starting from November. For the EU, this is undoubtedly an industrial earthquake that is about to break out.
In addition to chips, China also dominates the global supply chain of rare earth, which is important for the European Union’s automotive, electronics and defense industries.China has announced this month that it will strengthen controls on rare earth exports, which is also one of the key reasons why the EU is eager to invite Minister Wang Wang Tuong to visit.
(Nexperia UK plant)
Before, the EU followed the United States and wanted to "de-risk China". But the two events of Nexperia chips and rare earths show that the industrial chain is now so globalized, It will not only be unrealistic to forcibly kick China out, but will also destroy Europe's own economic stability first.This forced the EU to return to a pragmatic path and want to work with China to maintain the stability of global industrial and supply chains.
In the end, the EU is so urgent, because once it is handled poorly, an economic crisis is about to come; and China can so tolerate, or because there are solid industrial bases and key strategic resources. Now that the global economy is so tightly entangled, it is particularly dangerous to use political means to forcibly change business rules.
In short, no matter at any time, win-win cooperation is more in everyone's fundamental interests than unilateral pressure.