China has called on the Netherlands to reverse its intervention in the operations of Nexperia, a chipmaker owned by Chinese entity Wingtech, accusing the Dutch government of disrupting global supply chains. The Chinese Ministry of Commerce stated on Wednesday that the Netherlands should "immediately correct its mistake" and cease what it described as "improper administrative interference" in the company.

The Dutch government issued an order in September restricting Nexperia's ability to make significant decisions without prior government approval. This action was motivated by concerns that Wingtech, Nexperia's Chinese owner, intended to move European production facilities to China. The Netherlands cited the need to safeguard its chip supply as a key justification for the order.

The move by the Dutch government highlights growing concerns in Europe and the United States regarding the potential for China to dominate key industries, particularly in the technology sector. Semiconductors, or chips, are essential components in a wide range of products, from smartphones and automobiles to military equipment. Control over chip production is therefore seen as a matter of national security and economic competitiveness.

Nexperia, headquartered in Nijmegen, Netherlands, specializes in the production of discrete, logic, and MOSFET devices. These components are used in various industries, including automotive, industrial, computing, and consumer electronics. The company has a long history in the Netherlands, having been part of Philips before being acquired by Wingtech in 2017.

The intervention in Nexperia's operations reflects a broader trend of increased scrutiny of Chinese investments in strategic sectors in Europe. Several European countries have tightened their foreign investment screening mechanisms in recent years, partly in response to concerns about technology transfer and national security. The European Union has also been working to strengthen its own semiconductor industry, aiming to reduce its reliance on foreign suppliers, including those in Asia.

The Chinese government's response underscores the importance it places on protecting its companies' overseas investments and ensuring access to critical technologies. China has been investing heavily in its domestic semiconductor industry in recent years, seeking to become self-sufficient in chip production. However, it still relies on foreign suppliers for advanced chips and manufacturing equipment.

The dispute over Nexperia is likely to further strain relations between China and the Netherlands, as well as between China and the broader European Union. It also highlights the growing tensions between economic cooperation and national security concerns in the global technology landscape. The next steps will likely involve further negotiations between the two countries, and potentially legal challenges to the Dutch government's intervention.