The Dutch government has taken control of a China-owned semiconductor company, Nexperia, after having been warned by U.S. officials in June that the company “may not be able to export to the US if its Chinese chief executive, Zhang Xuezheng, remained in post” (The Guardian, October 14, 2025).
The focus on the CEO is a somewhat odd way to frame the problem, which pertains to the fact that for the last several years Nexperia has been owned by a Chinese-based company that the U.S. now officially regards as a threat to national security. In any case, Zhang is out.
Last year, the U.S. put Wingtech on its Entity List of firms subject to restrictions because of the danger they pose to U.S. national security. In 2018, Wingtech had bought Nexperia from Philips, a Dutch electronics company.
Before September 30, 2025, the Entity List excluded subsidiaries of the listed companies, an oversight that can most charitably be described as dumb. Obviously, subsidiaries are under control of the parent companies and could be used to somehow or other evade restrictions imposed on the parent company. Now, though, the list has been expanded to include subsidiaries, “which meant Nexperia would be hit by its restrictions by the end of November” had Wingtech’s relationship to it continued.
In an extraordinary move, the Dutch government revealed on Sunday that it had taken control of the Nijmegen-headquartered chipmaker, citing worries about the possible transfer of technology to Wingtech.
That has heightened tensions with Beijing, with Nexperia saying it is now in negotiations with the US to remove barriers to exports….
The Dutch invoked never-before-used powers under a Dutch law known as the “Availability of Goods Act”, which does not give it ownership but gives it the power to reverse or block management decisions it considers harmful….
The Amsterdam commercial court [ruled] in a “preliminary opinion” that there were “well-founded reasons to doubt the correct policy and correct conduct of affairs” were being pursued by the company.
It appointed the Dutch businessman Guido Dierick to take Zhang’s position with a “deciding vote”, and transferred control of almost all of Nexperia’s shares to a Dutch lawyer for management.
The People’s Daily has voiced the Chinese Communist Party’s irritation with the Dutch takeover of Nexperia, characterizing it as a manifestation of weak nerves. “China’s scientific and technological progress has profoundly shaken the nerves of western hegemony.”
The Guardian reports that Wingtech is “30% owned by Chinese national and regional governments and affiliated investment funds….”
Also see:
Department of Commerce: “Department of Commerce Expands Entity List to Cover Affiliates of Listed Entities” (September 29, 2025)
“Under today’s rule, any entity that is at least 50 percent owned by one or more entities on the Entity List or the Military End-User (MEU) List will itself automatically be subject to Entity List/MEU List restrictions. In addition, significant minority ownership by an Entity List/MEU List company is a red flag that triggers additional due diligence requirements for exporters. Previously, the Entity List and MEU List completely excluded all entities that were not specifically named on the Entity List/MEU List—even if there were extensive corporate and financial ties with listed entities.”
