Chinese tech firm Wingtech has pushed back hard against the Dutch government’s move to take control of chipmaker Nexperia, saying the decision has no legal ground and must be reversed.
Wingtech had filed its first challenge around a month ago, on October 21, then expanded the case on November 10, and according to Reuters, the company told the Ministry of Economic Affairs that the intervention was an “unprecedented and disproportionate deprivation of property” and should be removed.
They argued that nothing in Dutch law or in European rules allows the government to step in like this.
Wingtech’s frustration grew after the Netherlands suspended its takeover attempt on Wednesday, but refused to cancel the original September 30 order. The Dutch side said the move was needed to stop the company’s former chief, Zhang Xuezheng, from shifting Nexperia’s European work to China.
China said this pause was not enough. The Commerce Ministry in Beijing stated that the Dutch action did not meet its demand to fully withdraw.
Both China and Wingtech also want the government to drop a second legal case that claims there was mismanagement inside Nexperia.
Dutch state pushes its case in court
More files seen by Reuters allegedly show that Dutch Economy Minister Vincent Karremans pressed the court to move fast right after the state stepped in. He warned judges that Nexperia assets could be moved to China if the court did not act.
In a letter, state lawyers argued there was a “considerable risk” that Wingtech would not respect the intervention order. The court then removed Zhang in October, saying he had mismanaged the company.
Zhang is the founder of Wingtech and was also the former CEO of Nexperia. The fight has now turned into a bigger issue. ASML’s CEO Christophe Fouquet spoke about it on Dutch TV program Buitenhof.
He said the last weeks showed how “the ecosystem is fragile” and that everyone must “show responsibility.” Fouquet said things went wrong because people did not speak early enough.
He added, “What is key on this topic is to talk before you escalate and maybe this time it went the other way around.” He warned that “there’s a lot at stake,” with chip shortages already hitting carmakers.
Wingtech and Beijing are still demanding that the Netherlands step back and remove all actions taken against Nexperia. The company wants its full control restored. The Dutch government has not said when it will decide on the appeal.
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Source: https://www.cryptopolitan.com/appeal-dutch-intervention-nexperia-not-legal/
