A dispute between Amsterdam and China over technology transfer has disrupted chip supplies to carmakers.
Published November 4, 2025
China has accused the Netherlands of obstructing a resolution to a dispute that has disrupted the auto sector’s supply chain, hit production and caused some companies to furlough workers, and criticized the Netherlands over its seizure of semiconductor maker Nexperia.
Nexperia is Chinese-owned but based in the Netherlands and makes billions of simple but ubiquitous chips for cars and other electronic devices. The supply of these chips has been raging ever since the dispute between Amsterdam and China over technology transfer.
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Following positive signs from talks over the weekend, China’s Ministry of Commerce issued a strongly worded statement on Tuesday urging the Netherlands to “cease interfering” in Nexperia’s internal affairs.
“The Dutch side is sticking to its unilateral course without taking concrete steps to resolve the issue, and it is inevitable that the negative impact on the global semiconductor supply chain will deepen further,” the ministry said in a statement.
“Zero autonomy” in the automotive sector
The Chinese government’s statement contradicts messages from The Hague, Brussels and Nexperia that they are making progress toward a resolution, and will be a concern for automakers vying for supplies of Nexperia’s chips.
The Dutch government took control of Nexperia on September 30, claiming that Wingtech, Nexperia’s Chinese owner, plans to move the company’s European production to China, which poses a threat to Europe’s economic security.
China responded by halting exports of the company’s finished chips, which are mostly packaged in China. Following a meeting between US President Donald Trump and Chinese President Xi Jinping, the US announced that it would begin accepting applications for exemptions this weekend.
A spokesperson for the Dutch economy ministry, which invoked a Cold War-era law to intervene in Neexperia, told Reuters that talks between the two governments were still ongoing.
“We will continue to communicate with the Chinese authorities and our international partners and work towards a constructive solution that is beneficial to Nexperia and our economy,” the spokesperson said on Tuesday.
European automakers and suppliers are applying to China for export exemptions for Nexperia chips, which must be paid in Chinese currency, or looking for alternative suppliers.
The CEO of Jeep and Fiat maker Stellantis told Reuters on Tuesday that weaknesses in its European supply chain put it at a competitive disadvantage against Chinese rivals.
“Our system today means that we have no autonomy as an industry,” Antonio Filosa told a sector meeting in Paris. “Look at the Nexperia chip crisis. Look at the rare earth crisis in April, which hit us very hard.”
“Please de-escalate as soon as possible”
The European Commission said it welcomed the industry’s indication that China has worked with EU companies to restore some of the chip flows, averting the worst-case scenario and creating time and space to find a durable solution.
A Nexperia spokesperson warned customers that it could not guarantee the quality of shipments from its Chinese site, and said the company was focused on restoring supply to customers and aimed to “contain the situation as quickly as possible.”
Mercedes-Benz Chief Executive Officer Ola Källenius told Reuters in Paris that there were signs that a deal was nearing between China, Europe and the United States, which put WingTech on its list of business entities late last year.
Kallenius said German automakers have enough chips for now, adding: “We will see what the outcome of the US-China deal will be. We are watching it closely.”
A Wingtech spokesperson could not be reached for comment. The company said it could resolve the situation “only by returning full control of Nexperia to its parent company.”
