Europe’s economic self-sabotage: The Nexperia heist and its fallout
Under pressure from Washington, the Netherlands has expropriated Nexperia, one of Europe’s few thriving semiconductor companies. This move, which disregards property rights, risks undermining Europe’s credibility and attractiveness as a safe, rules-based place to do business.
What just happened in the Netherlands should alarm anyone who still believes in Europe’s commitment to the rule of law. Using a dusty 1952 wartime statute known as the Goods Availability Act, the Dutch government has effectively seized control of Nexperia. The company’s Chinese CEO was suspended, its shares were placed under a government-appointed trustee, and a “temporary” director was granted decisive voting power.
The official justification for this drastic intervention was vague allegations of governance failures. However, the real trigger appears to have been pressure from the United States. According to court filings, Washington privately warned The Hague in June that unless it removed Nexperia’s Chinese leadership, both Nexperia and its parent company, Wingtech Technology, would be added to the U.S. Entity List — an economic blacklist that restricts trade and investment.
This case highlights the growing geopolitical tensions shaping the global semiconductor industry, and it raises deep concerns about the future of property rights and the rule of law in Europe.
https://www.sott.net/article/502437-Europes-economic-self-sabotage-The-Nexperia-heist-and-its-fallout
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