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Lydia van Tilburg's avatar

I had to gather the exact state of affairs surrounding Nexperia from several recent (vague) Dutch press articles and government statements. My summary of this from my Dutch homeland:

1) Since the dispute began, Nexperia's Chinese branch has stopped listening to the Dutch headquarters. In turn, the Dutch headquarters decided to stop supplying some of its chips to the branch in China (China processes, packages, and ships the chips.) Both parties accuse each other of failing to honor financial agreements.

2) In exchange for resuming exports, Trump promised to suspend several export restrictions on products from Chinese subsidiaries (such as Nexperia).

3) About 60% of Nexperia chips are supplied to the automotive industry. Aumovio supplies car manufacturers like BMW, Volkswagen, and Stellantis with components such as sensors, brakes, and automated driving systems that use its Nexperia chips. From production facilities in China, the company (China) now sends Nexperia chips to Hungary, from where they are then distributed to other factories. In other words, Aumovio placed a direct order in China, and that order has been approved by China. According to Aumovio, export restrictions in China have now been completely lifted.

4) The Netherlands and China still need to reach an agreement on control over Nexperia and the position of former CEO Zhang (of Wintech), who was ousted by the Netherlands. China has just today stated that it wants the Netherlands to take further steps to resolve the mutual conflict over chip company Nexperia.

So the Chinese have fulfilled their commitment to Trump, and the ball is now in the Netherlands' court. There hasn't been much progress there yet. And it looks like China is indeed already restructuring their entire relationship on their terms.

I don't know if China can take over the European part of the Nexperia chips. Beijing's response could be (and probably will be): if you limit us, we will come up with our own. China holds and make good cards. Then the Netherlands and the EU (+ USA), through their own fault, will have gotten exactly what they wanted to avoid. And besides being left with blisters to sit on, they'll also be up against the wall.

The time for messing with China/the BRIC countries or regarding them as backward is over. Learning and maturing is a process of struggle and growth. And that applies now even more to the West than to the South. Yes, the image of grandeur of a long by-gone era does not fit the West anymore. Looking deeper; It never fitted.

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No1's avatar

Thanks a lot for the detailed analysis! It's good to have some locally sourced information.

I feel the BRICS are just starting to flex their muscles. And it might be wise to not stay fully invested in EUR or USD. Hard assets is what the world makes go around next few decades in my opinion.

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occamsrazorback22's avatar

Big hat...no cattle. The Dutch, like the rest of the West, are a comedy troupe. Beyond pathetic.

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voza0db's avatar

The FUN part is that in the European Plantation named "Portugal" a bunch of modern moron slaves lost theirs jobs do to this action by the Dutch Morons in charge... but they "think" it was China's fault!

The POWER of the REGIME MEDIA at full display.

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Yoni Reinón's avatar

Europe is just repulsive. The Dutch can always take their chips from their washing machines...

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IgbyMac's avatar

All you can do is laugh at the Netherlands, Europe and the entire Western bloc. These are not serious people by any metric. Trump is certainly the perfect leader to be marshalling the collapse of humanity and western civilization.

Great article!

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No1's avatar

That's why I painted Trump as the "Grey Champion" in my article here: https://no01.substack.com/p/the-darkest-hours-are-before-the-f1e

A bit bleak, but no less interesting! And if you can see through the theatrics, even profitable.

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voza0db's avatar

Clearly the "politicians" in that Land are direct descendants of the Neanderthals...

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No1's avatar

Don't insult the Neanderthals! Their brain capacity was 17% bigger than ours! (https://scienceinsights.org/how-did-neanderthal-brain-size-compare-to-ours/)

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James Irwin's avatar

Fabulous article. I want a RMB account in Los Angeles, California.

What Chinese Bank would be best. Also the bank must deal with metals like 100 oz silver bullion at their branches.

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No1's avatar

Bank of China is the best choice for opening an RMB account in Los Angeles, given its international network and experience handling RMB business for foreigners.

However, Chinese bank branches generally do NOT handle 100 oz silver bullion directly—physical metals are usually managed by specialist local dealers, not banks.

But I've got to warn you: As an American citizen, due to the current US-China tensions, your account could potentially be restricted or blocked by the bank due to our government's actions or sanctions. (I am talking from experience: my Russian stocks are still blocked till this day)

Always research the risks! Especially anything involving with foreign currency, entities or international banking relationships.

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