The Netherlands yesterday signalled it would seek to meet with China to discuss a resolution to the current“Impasse” at the company. This incident not only affects sino-dutch economic and trade relations, but also makes the global automotive chip supply chain face uncertainty.
According to Reuters, Dutch Minister of Economic Affairs Vincent Kallemans said in a program on the 19th that the Chinese side believes that the Netherlands and the United States are jointly interfering in the affairs of Anshi Semiconductor, but the purpose of the Dutch government’s action is, to prevent the former Chinese chief executive of Ernst & Wesson from transferring its operations and intellectual property out of Europe. Kallemans said that the Dutch and Chinese should work together to solve the problem of the same demand from Chinese carmakers. According to him, Dutch diplomats are actively mediating, and he will meet Chinese officials in a few days, “The matter has been raised to the highest level of discussion.”.
The“Impasse” at Anshi stems from the so-called“Penetration Rule” that was released in the United States on September 29. Since then, the Dutch government directly involved in the internal affairs of the company by administrative means, triggering a chain reaction. Anshi Global Business and governance structure was affected, and on the 17th of this month out of China employees were suspended pay, system access to the disruption of the news, business operations were affected.
On October 19, World Semiconductor China released an open letter entitled“World Semiconductor China to all employees” to“Set the record straight”. At all times, the letter said, Anshi domestic companies are independent, decision-making Chinese enterprises. The letter also stressed that at present, the company’s production and operation as usual, the work in an orderly manner. The board of directors and management always make every effort to ensure that the company is functioning properly and will not allow external forces to affect the operation of the company or harm the interests of employees.
As the Anshi incident continues to ferment, the global automotive industry chain began to bear pressure. While it is not the company that makes the most cutting-edge chips, it has a wide range of products, a large number of products and a wide range of applications, especially in automotive electronics, Reuters reported. The company makes its chips in Germany, where they are packaged and sold to global auto makers. The industry is concerned that if the“Stalemate” continues, no short-term alternative can be found, the global car companies may face supply shortages or even the risk of production.
“If we don’t see a rapid recovery in car chip shipments, auto production in the United States and other countries will be hit, and it could spill over into other industries,” said UIC president and Chief Executive Officer Jean-luc Bozera. “We are calling for an early resolution to ensure the normal functioning of the US and global car industry.”
He yongqian, a spokesman for the Ministry of Commerce of the People’s Republic of China, said on the 16th that the “Penetration rule” of the US was the culprit that harmed Chinese companies, and hoped the Dutch side would insist on independence, to respect objective facts, adhere to the spirit of contract and market principles, correct wrong practices and protect the legitimate rights and interests of Chinese investors, create a fair, transparent and predictable business environment.
Mi Zhou, an associate researcher at the Ministry of Commerce’s Research Institute, told the Global Times on the 20th that the Dutch need to remain independent to solve the problem, rather than generalising the concept of “National security” under US duress, we should politicize economic and trade issues, abide by the contract between our enterprises and the general market principles, and properly resolve our differences with China through consultation. Mi Zhou said the incident is a reminder of the need to focus on integrated development and security, break through key core technologies and build a more complete industrial chain in the face of rising global geopolitical uncertainty, firmly grasp the autonomy and initiative of scientific and technological development, in order to achieve high-quality development tamp a more solid foundation.