By Necva Tastan Sevinc
ISTANBUL (AA) - The Dutch government has suspended its intervention at chipmaker Nexperia in an effort to calm diplomatic tensions with China, outgoing Economic Affairs Minister Vincent Karremans said on Wednesday.
The decision temporarily lifts a measure imposed in late September that allowed Karremans to block key decisions at the Nijmegen-based company if they endangered chip production in the Netherlands or Europe, Dutch broadcaster NOS reported.
He stepped in after Nexperia’s Chinese director was accused of jeopardizing European supply security.
A day after the intervention, a corporate judge dismissed the director.
China responded by blocking exports from Nexperia’s largest factory, located in China, triggering a political dispute and leaving European automakers uncertain about chip deliveries throughout October.
Karremans said suspending the intervention is intended to help “restore relations with China,” noting that Dutch officials are currently in Beijing to discuss resolving the standoff.
He stressed, however, that the suspension does not mean the measure has been rolled back permanently.
The government can reinstate it at any time should Nexperia take decisions that threaten European chip supply.
Nexperia, headquartered in the Dutch city of Nijmegen, relies heavily on production in Asia. The Chinese export freeze created weeks of uncertainty for car manufacturers, who warned that shortages could disrupt production lines.