Dutch Government Announces Suspension of Administrative Order Against Nexperia

Dutch Government Announces Suspension of Administrative Order Against Nexperia

The statement regarding the suspension of the administrative order is as follows:

Minister of Economic Affairs Vincent Karremans: “In light of recent developments, I believe it is the right time to take constructive measures, suspending the administrative order regarding Nexperia under the Goods Supply Act, and closely consulting with our European and international partners. In the past few days, we have had constructive discussions with the Chinese government. We are positive about the measures taken by the Chinese government to ensure chip supplies to Europe and other parts of the world. We see this as a manifestation of goodwill. In the coming period, we will continue to engage in constructive dialogue with the Chinese government.”

Along with this statement, the Dutch Minister of Economic Affairs submitted a letter to Parliament, which, except for content deemed confidential and to be reported to Parliament separately, listed the reasons for the administrative order, reactions from various parties, impacts on the supply chain, court procedures, considerations for the suspension of the administrative order, and the ongoing obligation for information disclosure.

The Goods Supply Act has been invoked for the first time since 1952. Although the Dutch Minister of Economic Affairs responded to questions regarding the potential misuse of this law in a Q&A session, he did not address it directly, instead mentioning China’s chip export controls and stating that the government has no authority to interfere with court bans on relevant executives.

In both the Q&A and the letter submitted to Parliament, the Dutch government clearly stated that the current court bans and judicial procedures will not be affected by the suspension of the administrative order, and insisted that it will continue to monitor product supply security through similar means. Due to personnel issues, the outlook remains uncertain, and the situation regarding Nexperia is currently in a stage of “cautious optimism.”

(For inquiries, please contact Attorney Zheng Ziqing at Zhonglun

[email protected])

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