Following discussions with China, the Dutch government has halted its intervention at Nexperia, a Chinese-owned chipmaker situated in the Netherlands. Concerns over “serious governance shortcomings” and the European supply of semiconductors for automobiles and other electronic products prompted the Hague to take action in September. Beijing responded by prohibiting the company’s semiconductor shipments.
But after “constructive talks” with Beijing, the Dutch government announced on Wednesday that it would reverse its initial decision. China described the action as a “first step in the right direction towards a proper resolution” and expressed its approval.
Global supply chains are at risk due to shortages of Nexperia, a significant supplier of basic computer chips to the automotive industry. The ability of manufacturers to produce their goods would be severely impacted by a scarcity of computer chips, which are needed in many electronic gadgets and automobiles.
Tensions between the European Union and China, which have been rising in recent months due to trade and Beijing’s relationship with Russia, will be reduced by the Dutch government’s decision.
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