The Dutch government is actively seeking a resolution with China regarding the export ban on Nexperia chips, which took effect this week. This ban has raised concerns about potential disruptions to global car manufacturing, as these chips are essential components for the automotive industry.

Caretaker economic affairs minister Vincent Karremans stated his intention to work with China to find a solution, following the Netherlands’ decision to take control of Nexperia. This decision came after a court ruling in Amsterdam removed Nexperia’s Chinese chief executive, Zhang Xuezheng, from his position. Karremans hopes that consultations with Beijing will lead to the lifting of the ban.

The Dutch government intervened in Nexperia under a national security law, which allows the economic affairs ministry to block or reverse company decisions in exceptional cases. Karremans explained that this measure was taken to safeguard chip supplies for the Dutch and European industries.

Nexperia, based in Nijmegen, was acquired by Chinese electronics firm Wingtech in 2019. It operates a significant production site in China, manufacturing approximately 50 billion chips annually. The export ban prohibits these chips from leaving the country.

China alleges that the Netherlands acted under pressure from the United States, but Karremans refuted this claim, asserting that the decision was his own and not coordinated with the US. However, court documents reveal that the US had contacted the Dutch foreign ministry to express concerns about Zhang’s position at Nexperia.

Automakers worldwide have cautioned about potential major disruptions if Nexperia’s exports remain blocked. The US-based Alliance for Automotive Innovation has warned that production lines could be affected as early as next month.

Karremans emphasized the global importance of restoring chip supplies and stated that he is in discussions with both Nexperia and Chinese authorities. He stressed the need to ensure that Nexperia can overcome this situation, in the interest of American, Dutch, European, and Chinese economies.