China slams Dutch side for not fixing Nexperia issue, bearing full responsibility for causing global semiconductor supply chain chaos – Global Times

Report on the Nexperia Semiconductor Supply Chain Disruption

Executive Summary

A dispute involving the Netherlands government and the Chinese-owned semiconductor company Nexperia has escalated, causing significant disruption to the global semiconductor supply chain. The People’s Republic of China, through its Ministry of Commerce (MOFCOM), has assigned full responsibility for the instability to the Netherlands. This report details the events, stakeholder positions, and the profound implications for several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 17 (Partnerships for the Goals).

Analysis of the Dispute and its Impact on Sustainable Development

Actions by the Netherlands Government

The current crisis stems from a series of actions taken by Dutch authorities, which have been characterized by China as detrimental to stable international economic relations and the principles of fair governance outlined in SDG 16 (Peace, Justice, and Strong Institutions). Key actions include:

• The seizure of control of Nexperia from its Chinese parent company, Wingtech Technology, citing economic security concerns.
• The suspension of Nexperia’s CEO, Zhang Xuezheng.
• A subsequent decision by Nexperia Netherlands on October 26 to halt wafer supplies to its manufacturing unit in China.

These interventions in corporate affairs have directly disrupted established production patterns, challenging the objectives of SDG 12 (Responsible Consumption and Production) by creating chaos in a highly integrated global industry.

Response from the People’s Republic of China

China’s MOFCOM has responded by positioning itself as a responsible stakeholder committed to global industrial stability. The ministry’s response emphasizes a commitment to mitigating the negative impacts on global supply chains, a cornerstone of achieving SDG 9.

1. Assigning Responsibility: MOFCOM stated that the Netherlands must bear full responsibility for the consequences of its unilateral actions, which have escalated the supply chain crisis.
2. Mitigation Measures: Demonstrating a commitment to global economic health (SDG 8), China announced on November 1 that it would grant export exemptions for qualified orders. This measure is intended to help Nexperia’s China unit resume supply and stabilize the market.
3. Call for Partnership: China has urged the Netherlands to engage constructively, bearing in mind broader China-EU economic relations and the shared goal of secure global industrial chains, directly invoking the spirit of SDG 17 (Partnerships for the Goals).

Implications for Global Industrial Stability and SDGs

Disruption to Critical Infrastructure and Innovation (SDG 9)

The semiconductor industry is a foundational component of modern global infrastructure and innovation. The actions taken have created turbulence that threatens the stability of this critical sector. By politicizing a technical and commercial issue, the dispute undermines the reliable industrial processes necessary to advance technology and infrastructure globally, directly contravening the aims of SDG 9.

Threats to Economic Growth and International Partnerships (SDG 8 & SDG 17)

The instability in the semiconductor supply chain has ripple effects across numerous industries, including the automotive sector, potentially impacting employment and economic growth worldwide. This jeopardizes progress toward SDG 8. Furthermore, the failure to find a collaborative solution highlights a breakdown in international cooperation. The situation underscores that unilateral actions, rather than partnership-based dialogue as promoted by SDG 17, lead to mutual economic harm and destabilize the global systems required for sustainable development.

Conclusion and Outlook

The Nexperia dispute serves as a critical case study on the interdependence of the global economy. China has demonstrated goodwill through measures such as export exemptions, signaling a preference for solutions that support global industrial stability. However, MOFCOM has warned that continued failure by the Netherlands to engage in a constructive, responsible manner will only worsen the negative impacts on the global supply chain. A resolution that aligns with the principles of international partnership (SDG 17) and respect for institutional integrity (SDG 16) is imperative to restore stability and ensure continued progress toward shared global development goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   • SDG 8: Decent Work and Economic Growth: The article’s focus on the “global semiconductor supply chain crisis,” disruptions to “normal production,” and the impact on “China-Netherlands and China-EU economic and trade relations” directly relates to economic stability and growth.
   • SDG 9: Industry, Innovation, and Infrastructure: The core of the dispute is the semiconductor industry, a critical component of modern technology and industrial infrastructure. The text repeatedly mentions the need to maintain the “stability and security of global industrial and supply chains.”
   • SDG 16: Peace, Justice, and Strong Institutions: The conflict involves governmental actions, legal rulings, and international consultations. The article mentions an “erroneous ruling” by a Dutch enterprise court, the infringement of a Chinese enterprise’s “legitimate rights and interests,” and calls for governments to “act responsibly,” all of which are central to the principles of justice and strong institutions.
   • SDG 17: Partnerships for the Goals: The entire issue revolves around a breakdown in bilateral partnership (China-Netherlands) and its wider implications for China-EU relations. The call to “work with the Chinese side responsibly” and find a “constructive solution” highlights the importance of international cooperation for global stability.

2. What specific targets under those SDGs can be identified based on the article’s content?

   • Under SDG 8 (Decent Work and Economic Growth):
     • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The disruption in the high-tech semiconductor supply chain directly threatens the productivity and innovation capacity of dependent industries, such as the auto industry mentioned in the article.
   • Under SDG 9 (Industry, Innovation, and Infrastructure):
     • Target 9.b: Support domestic technology development, research and innovation. The dispute over control of Nexperia, a key technology company, and the subsequent export restrictions and exemptions are directly linked to policies affecting technology development and industrial capacity.
   • Under SDG 16 (Peace, Justice, and Strong Institutions):
     • Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all. The article’s claim that the Dutch court issued an “erroneous ruling stripping the Chinese enterprise of its equity, severely infringing upon the legitimate rights and interests of the Chinese enterprise” directly points to this target.
     • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The call for the Dutch government to “stop interfering in corporate internal affairs” and to cease acting “unilaterally” is a plea for more accountable and transparent institutional behavior.
   • Under SDG 17 (Partnerships for the Goals):
     • Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. The article describes the Dutch government’s actions as “unilateral” and a “reckless move that… destabilizes the global supply chain,” which runs counter to the principles of a rules-based, cooperative trading system.
     • Target 17.16: Enhance the Global Partnership for Sustainable Development. The article is a clear call to repair the bilateral partnership between China and the Netherlands, emphasizing the need to bear in mind “the broader China-Netherlands and China-EU economic and trade relations” for the sake of global stability.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   • Yes, while the article does not cite official SDG indicators, it implies several metrics for measuring progress:
   • For SDG 8 & 9:
     • Indicator: The stability of the semiconductor supply chain. The article mentions that the initial decision “disrupted normal production, causing turbulence and chaos.” A positive measure would be the resumption of “wafer supplies” and the “stable and sustained fulfilment of customer orders.”
     • Indicator: The number and scope of export exemptions. China’s announcement that it would “grant export exemptions for qualified orders” is a concrete, measurable action aimed at mitigating the supply chain disruption.
   • For SDG 16:
     • Indicator: Resolution of the legal and administrative dispute. Progress could be measured by the reversal or resolution of the Dutch court’s ruling and the cessation of government “interfering in corporate affairs.”
   • For SDG 17:
     • Indicator: The status of bilateral consultations. The article notes the Dutch side was “failing to demonstrate a constructive attitude or actions” during consultations. A positive indicator would be the resumption of productive “dialogue” and the joint development of a “constructive solution to the Nexperia issue.”

4. SDGs, Targets, and Indicators Table

   SDGs	Targets	Indicators (Implied from the article)
   SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity through technological upgrading and innovation.	Resumption of normal production and wafer supplies; Stable fulfillment of customer orders.
   SDG 9: Industry, Innovation, and Infrastructure	9.b: Support domestic technology development, research and innovation.	Stability of the global semiconductor supply chain; Granting of export exemptions for eligible shipments.
   SDG 16: Peace, Justice, and Strong Institutions	16.3: Promote the rule of law and ensure equal access to justice. 16.6: Develop effective, accountable and transparent institutions.	Resolution of the “erroneous ruling” by the Dutch enterprise court; Cessation of government interference in corporate affairs.
   SDG 17: Partnerships for the Goals	17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. 17.16: Enhance the Global Partnership for Sustainable Development.	Resumption of constructive dialogue and consultations between China and the Netherlands; Finding a “constructive solution” to the Nexperia issue.

Source: globaltimes.cn