U.S.–China Tensions Spill Over to Europe: Beijing’s Nexperia Export Curbs Put Global Auto Industry on Alert

Dutch Government Ousts Nexperia’s China-Born CEO, Signaling Direct Intervention
Yielding to Intensifying U.S. Export Pressure?
China Strikes Back With Its Own Controls, Sending Auto Supply Chains Into Turmoil

Europe’s auto industry has been caught in the crossfire of the U.S.–China tech rivalry. As the Chinese government abruptly moved to restrict exports by Nexperia — a Netherlands-based semiconductor firm owned by a Chinese parent company — growing concern is spreading that production lines at leading automakers such as Volkswagen could soon come to a halt.

Netherlands Takes Control of China-Owned Nexperia

According to Bloomberg and other international reports on October 16 (local time), the Dutch government invoked the Goods Availability Act on the evening of Sunday, October 12, and forcibly dismissed the Chinese chief executive officer of Nexperia, a Netherlands-based semiconductor manufacturer owned by Chinese investors. The law allows the government to intervene in private companies during emergencies to ensure access to essential goods.

The unprecedented move effectively places Nexperia under full Dutch government control. Under the order, the Minister of Economic Affairs has the authority to block or overturn any board decisions and assume control over the company’s assets, intellectual property, operations, and personnel — both at Nexperia and its subsidiaries. Regular production activities are expected to continue for the time being.

In a statement, the Dutch government cited “serious governance deficiencies and concerns over technology leakage,” adding that the transfer of key semiconductor technologies to China could “undermine the overall stability of Europe’s industrial supply chains.” The measure was reportedly implemented on September 30 but disclosed to the public only recently.

U.S. Pressure Preceded the CEO’s Removal

Analysts believe Washington’s influence played a decisive role in the Dutch government’s decision to oust Nexperia’s Chinese chief executive. In June, the U.S. Department of Commerce’s Bureau of Industry and Security reportedly told the Dutch Foreign Ministry that replacing Nexperia’s CEO was “virtually a prerequisite” for the company to retain its exemption from the U.S. export control list. Nexperia is owned by China’s Wingtech, which was added to the U.S. Commerce Department’s export control list last year. The Biden administration expanded the scope of those restrictions last month to include subsidiaries of listed companies — effectively putting additional pressure on the Netherlands over its ties to Chinese capital.

Beijing reacted swiftly to the move. At a regular press briefing on October 16, Chinese Ministry of Commerce spokesperson He Yungchen said, “China is closely monitoring the Netherlands’ actions,” adding that “we firmly oppose the excessive use of national security as a pretext for direct administrative interference in corporate operations.” He warned that the measure “clearly violates market principles and the spirit of contracts, undermines the Netherlands’ business environment, and could harm both countries.”

China Blocks Exports of Nexperia Components, Disrupting Auto Supply Chains

In a sharp escalation, China has halted exports of products manufactured at Nexperia’s Chinese plants, shaking the global automotive supply chain amid intensifying U.S.–China tensions. While Nexperia does not produce advanced semiconductors, it occupies a critical position in the automotive parts ecosystem, supplying essential chips used in vehicle systems such as switches and steering controls — with hundreds of its components typically installed in a single car.

European automakers are warning that if Nexperia’s chip supply remains suspended, major production disruptions could occur within weeks. The European Automobile Manufacturers’ Association (ACEA) said on October 16 that carmakers and suppliers were informed last week that Nexperia could no longer guarantee chip deliveries. The association cautioned that existing inventories could be depleted within a matter of weeks, potentially forcing widespread factory shutdowns once supplies run out.

The Alliance for Automotive Innovation (AAI), representing major U.S. automakers including General Motors and Ford, also called for urgent action. AAI president John Bozzella warned that “if automotive semiconductor shipments do not resume quickly, vehicle production in the United States and many other countries will face serious disruptions, with ripple effects across multiple industries.”