If there is a trade war between China and the Netherlands, why is the Netherlands the biggest loser?

At a time when relations with China and the Netherlands became sensitive due to the Semiconductor, the Dutch Minister of Economy initiatively called China, I thought that Anshi's problems would be solved under high-level communication, but the result was disappointing.Why? Although the Netherlands said during the phone call that it "hopes to find a plan that is beneficial to all parties," it neither admitted its mistake nor mentioned returning it to them when they forcibly took over the governance rights of China companies in the Netherlands. How does this have the slightest sincerity to solve the problem? It's obviously unrepentant. As a result, the two sides did not reach a conclusion on this phone call.

The ins and outs of this matter are actually very clear.In the past few years, it was under the support of the Chinese market and funds that the Anchor Semiconductor continued to grow, and also paid a lot of taxes to the Netherlands. It is unthinkable that at the end of September this year, the United States just introduced a new regulation aimed at Chinese-owned subsidiaries, the Netherlands immediately followed by it, directly froze the global assets of the Anchor Semiconductor, and will hear that the shares of the Tai Technology will be transferred to third-party management, only symbolically left one share; also dismissed the chief executive appointed by the Chinese side, so that the Chinese management company system is not able to register, employees are also discharged, this is no longer a normal commercial control, but a public hard robbery.

After what happened, The Dutch economic minister initially called the phone, but repeatedly stressed that it was necessary to "search for a solution that would benefit all parties".What does this mean?But the position of the Chinese side is very clear: China attaches great importance to China-Hong Kong cooperation, the Netherlands must correct the wrong behavior, as soon as possible to return the management of enterprises to China in accordance with the law. But the Dutch side not only did not listen to it, but instead intensified. The operating system of the Ansh China region is still in a paralyzed state, employees have no way to pay, other Chinese enterprises want to carry out normal business with them, also facing certain difficulties.

In fact, it is not that the Netherlands has no "criminal record" in dealing with issues of concern to China.More than 40 years ago, the Dutch government insisted on selling submarines to Taiwan Province, China, despite China's solemn opposition, resulting in the downgrade of Sino-Dutch diplomatic relations by China, which were gradually restored many years later. Now, the Netherlands seems to have forgotten the lessons of history, and once again followed external forces, at the expense of violating the basic spirit of commercial contract.

But the Netherlands may not realize that today's China already has powerful countermeasures. On the one hand,The majority of the production capacity and business of Anselm Semiconductor in China, China's export controls implemented by Anselm China subsidiaries, directly affect its global supply capacity. Who can't get Anselm's chip, who suffered? European car companies. Anselm supplies 30 percent of the demand for the European automotive industry chip, if Europe can't get Anselm's chip, then at least part of the production line will have a short-term shutdown; On the other hand,China also has rare earth brands. Rare earths are used in the production of core components such as electric drives and sensors of automobiles, and only China in the world has the ability to supply the rare earth demand of the entire European automobile industry. Therefore, if China decides to play the rare earth card against Europe, the sky of the European automobile industry may collapse. As Toyota executives said, "China can shut down the entire automobile industry within 60 days". This is by no means alarmist, because the current rare earth inventory of European car companies can only last for about 60 days at most. Once the supply of rare earths is blocked and chip shortages are superimposed, the European auto industry will face a crisis of production suspension.

The Netherlands itself is unlikely to benefit from this storm.Its forced takeover of Nexperia means losing orders and investment in the Chinese market. At the same time, due to the inability to supply normally, Nexperia will also face huge claims from European car companies. More importantly, the national reputation of the Netherlands has been damaged. How many Chinese companies will dare to invest in the future? Generally speaking, the current attitude of the Netherlands is still "pretending to be confused". The next 60 days are critical. Will European automobile production capacity come to a standstill? How much will the Netherlands pay? Who the hell is the loser? The answer will be revealed soon.