The one who tied knot must untie it

Although China has been urging the Dutch government to take concrete actions to correct its mishandling of the Nexperia issue, the Dutch side seems to be waiting to get the nod from Washington before doing so.

The Dutch government's decision to block Nexperia's operations on the grounds of "national security" is neither justified nor responsible. It stems from the Netherlands' blind following of the so-called "affiliates rule" of the United States — a policy that the US administration has itself agreed to suspend for one year as part of the outcomes of its Kuala Lumpur economic and trade talks with China.

That fact alone exposes the irony and irrationality of the Dutch stance. While it is clear to all that the US rule — whereby the US and its allies expand export restrictions to any entity 50 percent or more owned by a company on the US' entity list — harm the global economy, the Netherlands continues to enforce the rule in its own dealings with Chinese enterprises.

The Netherlands therefore bears full responsibility for the current disruption in the semiconductor sector. The Dutch authorities' reckless interference in Nexperia's normal operations represents an improper intrusion into corporate affairs, undermines investor confidence and sends a negative signal to global markets about Europe's commitment to fairness and openness. It is not "national security" that is being safeguarded, but protectionism that is being practiced in the name of it.

In contrast, China has shown its sense of responsibility through constructive actions. The Ministry of Commerce of China has promptly approved relevant semiconductor export license applications for eligible exports intended for civilian use, facilitating the resumption of supplies from Nexperia China. This responsible attitude reflects China's consistent commitment to cooperation and win-win outcomes.

Beijing's approach to global trade in recent days further illustrates its constructive spirit. On Sunday, The Ministry of Commerce announced the suspension of a clause in its 2024 Announcement No 46 concerning the export control of dual-use items — including gallium, germanium, antimony and superhard materials — to the US. The suspension, effective until Nov 27, 2026, means that exports of these materials for legitimate civilian purposes will proceed under regular supervision rather than broad restrictions. This decision shows China's pragmatic attitude toward maintaining the stability of global supply chains.

On Monday, the ministry announced a further significant step: the one-year suspension of countermeasures against five US-linked subsidiaries of Hanwha Ocean, a leading shipbuilding company from the Republic of Korea. This move came in direct response to Washington's decision to suspend for one year its Section 301 investigation measures targeting China's maritime, logistics and shipbuilding industries.

By aligning its actions with the principle of mutual restraint on economic and trade issues, Beijing once again demonstrated its commitment to dialogue and stability rather than confrontation. Beijing's decisions follow the positive outcomes of the China-US economic and trade talks in Kuala Lumpur, where both sides agreed to suspend or adjust a series of restrictive measures, including the "affiliates rule".

The easing of tensions between the world's two largest economies sends a timely message to the Dutch government that dialogue, reciprocity and respect for market principles have proved to be effective ways to address differences.

Indeed, the Dutch side has stressed its willingness for talks. But rhetoric alone will not suffice — what is needed now are substantive and constructive proposals from the Dutch side to restore confidence and normalcy in the affected semiconductor trade.

Beijing, on its part, has shown openness and sincerity in seeking solutions. The Ministry of Commerce has confirmed that China has agreed to the Dutch Ministry of Economic Affairs' request to send personnel to China for consultations. This underscores China's readiness to engage in dialogue and cooperation to address practical concerns — a reflection of its broader vision of resolving disputes through communication.

The Netherlands should match this sense of responsibility and follow up with the same constructive attitude to correct its improper handling of the Nexperia issue.

As a gateway for China-Europe cooperation, the Netherlands should uphold openness and dialogue instead of resorting to politically driven interventions that harm both sides.

The Dutch government knows how to undo what it has done.