A Dutch court held a hearing on Wednesday to consider whether to order an investigation into Nexperia. Nexperia is a Chinese chip company at the center of the global battle for key semiconductor technology.
The company, based in the Netherlands but whose parent is China’s Wingtech Technology, has been the subject of a standoff between Beijing and the West that threatens to cripple carmakers that rely on its chips.
In September, the Dutch government invoked a 1952 law to effectively seize control of the company, a move that sparked outrage from Beijing.
The Amsterdam-based Enterprise Chamber also played a major role in the Nexperia battle in October, when it suspended the company’s China CEO Zhang Xuezheng, also known as Wing, citing concerns about his management.
On Wednesday, lawyers for Nexperia accused Wingtech of adopting a “scorched earth” policy to wrest control of the company.
Jeroen van der Schrieck, one of Nexperia’s lawyers, said: “Wingtech is doing its best to destabilize Nexperia, which is already under pressure from a crisis situation.”
-“mystery”-
Zhang Xuezheng did not attend the hearing. His lawyer said he was not well enough to attend because the case had taken a toll on him personally.
Jan Bart van de Hel, a lawyer for the Chinese tycoon, said: “The intervention[by the Dutch government]and especially the way it was handled is beyond Mr Rong’s comprehension.”
“This should not have happened at all. The situation has worsened unnecessarily,” he added.
Wingtech’s lawyer Dirk-Jan Duynstee said, “The real reasons that led to the minister’s intervention remain a mystery.”
The judges said they expected to rule on whether to order an investigation within four weeks at the latest.
It said in a statement that an investigation could be ordered “if a court has substantial grounds to doubt Nexperia’s sound policies and business operations.”
If the court does decide to order an investigation, it could also uphold or modify the decision made in October.
However, if the court decides that an investigation is not required, its October decision will no longer be valid.
In late October, following trade talks between Chinese President Xi Jinping and U.S. President Donald Trump, Beijing agreed to resume Nexperia chip exports that had been suspended due to the dispute.
In response, the Dutch government said it would suspend the emergency takeover, a “constructive step” praised by Beijing.
Although the political conflict has now subsided, all eyes are on whether a court will order an investigation.
cvo/ric/giv