On September 30, 2025, the Dutch government made a bold move, declaring what it termed a "forced takeover" of the Dutch headquarters of Nexperia. Nexperia is a chipmaker under Chinese control. The government cited "national security" apprehensions as the driving force behind this decision and promptly ousted its Chinese CEO, Zhang Xuezheng, from his leadership role.

The Dutch government's action stemmed largely from worries that Nexperia might transfer crucial technologies and intellectual property to China. This concern was heightened against the backdrop of U.S. pressure on the Netherlands to impose restrictions on Chinese companies. However, it's important to note that Nexperia primarily focuses on manufacturing power devices essential for the automotive and industrial control sectors, rather than high-end chips, which are often at the center of such geopolitical tensions.

In response to the Dutch government's move, China swiftly implemented export controls on Nexperia's Chinese subsidiaries and subcontractors. These controls prohibit them from exporting domestically produced components. This move has had a direct and significant impact on the global supply chain, particularly on the European automotive industry, which heavily relies on these components.

The production capacity of Nexperia's Chinese factories is substantial, accounting for over 70% of its total capacity. Crucially, the Dutch government lacks control over these factories and their employees in China. Faced with China's robust countermeasures, the Dutch government is now keen to engage in negotiations with China. Its aim is to prevent the actual transfer of technology and production capabilities out of the Netherlands, which could have far-reaching consequences for its economy and technological prowess.