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Dutch seized control of Chinese-owned Nexperia on

September 30

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Beijing then put export curbs on Nexperia chips

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Exemptions granted but tensions over Nexperia ownership

remain

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China sees revoking of Nexperia seizure as key to

resolution

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China hopes EU, Germany can persuade Dutch to revoke

seizure

By Eduardo Baptista

BEIJING, Nov 11 (Reuters) - China hopes Germany will

urge the Dutch government to revoke its seizure of chipmaker

Nexperia, Chinese Commerce Minister Wang Wentao said on Tuesday

during a call with his German counterpart.

Chinese-owned, Netherlands-based Nexperia, which makes

billions of chips for cars and other electronics, has over the

past month been at the centre of a global supply chain crisis,

triggered by Beijing imposing export controls on the company's

China-made products in response to the Dutch seizure.

Beijing has in the past week cranked up the pressure on the

Netherlands and the European Union by repeatedly accusing the

Dutch government of being uncompromising even as it loosened

export curbs, as well as calling on Brussels to lobby for a

revoking of the company's seizure.

But Wang's remarks, published on the Chinese commerce

ministry's website, are the first time Beijing has publicly

asked another country to push the Netherlands to reverse its

September 30 decision to take control of Nexperia.

OWNERSHIP DISPUTE

"(China) hopes Germany will play an active role in urging

the Dutch government to take practical steps as soon as possible

to correct its erroneous practices, revoke the relevant

measures, and promote an early resolution of the issue," Wang

told Katherina Reiche, Germany's minister for Economic Affairs

and Energy.

Reiche's ministry said it would not comment on bilateral

talks between China and the Netherlands, while adding it was in

close contact with its Dutch partners.

Dutch Economic Affairs Minister Vincent Karremans said in a

statement late on Tuesday the Netherlands and EU will work

together to "repair supply chains as quickly as possible."

Karremans' office declined to address China's complaint,

but said the state intervention did not target Nexperia's

day-to-day operations. It "only demanded continuity of

production and supply" for Europe, following fears operations

would be moved to China, a spokesperson said. A Dutch court has

separately suspended Nexperia's former Chinese CEO, the founder

of Nexperia parent company Wingtech, over alleged

mismanagement.

The German Economic Affairs ministry said Reiche emphasised

to Wang the importance of good economic relations between

Germany and China, but also pointed to growing trade imbalances.

Reiche "also made it clear that the new, broad-based Chinese

export controls, including those on rare earths, do not comply

with international standards and would have a significant impact

on Germany as a business location," her ministry said.

Beijing has described the Dutch action as improper

interference in a Chinese company's internal affairs and the

root cause of the supply chain disruptions that ensued.

Following Beijing's export controls last month, the sudden

shortage of Nexperia chips, mostly packaged in China, hit the

production of German carmakers and automotive suppliers,

prompting Germany to lobby China on behalf of these firms.

While the supply shortages have eased in recent days after

Beijing granted exemptions to its export controls, tensions over

the company's ownership and operations still remain and a

breakdown in negotiations on this issue between China and the

Netherlands could easily lead to another supply shortage.

"Ensuring the long-term stability of the global

semiconductor supply chain requires the Dutch side to

demonstrate a constructive attitude and take concrete actions,"

Wang said.