Dutch Minister Admits He Was Blindsided by China’s Retaliation in Nexperia Chip Crisis
Dutch economy minister Vincent Karremans has acknowledged that he did not anticipate China’s swift and forceful retaliation in the Nexperia crisis, raising doubts about the level of preparedness behind the Netherlands’ decision to invoke a Cold War era security law against the Chinese owned chipmaker. Speaking during a parliamentary debate on Thursday, Karremans said Beijing’s move to block Nexperia’s chips from leaving China was not the reaction his ministry had considered most likely.
The Dutch government had intervened in September to restrict activities at Nexperia, a Chinese owned but Netherlands headquartered firm, citing national security concerns. The action immediately reverberated through the global automotive industry, which relies heavily on Nexperia components. Beijing responded by choking off chip exports, deepening supply chain disruptions and escalating tensions with Europe.
Karremans admitted that officials had assessed the risk of various countermeasures but had not expected China to target the company’s outbound shipments so aggressively. Critics in parliament argued that the oversight reflects inadequate planning and a failure to understand Beijing’s likely playbook, especially after years of escalating technology competition between China and Western governments.
The Nexperia episode has intensified debate in the Netherlands and across the EU about the consequences of using security tools to regulate high tech sectors. While some lawmakers defend the intervention as necessary, others warn that poorly calibrated actions could backfire, leaving industries vulnerable and undermining Europe’s broader semiconductor ambitions.
The minister’s admission is likely to fuel calls for a more coordinated European approach to tech security, with opponents insisting that unilateral decisions leave member states exposed to retaliation from major powers.