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China-EU relations
EconomyGlobal Economy

Nexperia debacle shows Europe trapped between US and China, analysts say

Europe’s strategic weakness has left it caught in the crossfire of a growing US-China rivalry, analysts say

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A view of chipmaker Nexperia’s head office in the Netherlands. The tussle over Nexperia has highlighted Europe’s vulnerable position amid rising US-China tensions, analysts said. Photo: AP
Xiaofei Xuin Nijmegen, the Netherlands

The geopolitical tussle over Dutch chip firm Nexperia has exposed Europe’s increasingly precarious position: stuck in the middle of an intense US-China rivalry and unable to satisfy both sides at once, Dutch analysts said.

The only way out is for Europe to boost its strategic autonomy from both powers as soon as possible, they added.

Rising tensions between China and the United States have placed Europe in an almost impossible situation, as the US remains the continent’s main security provider while China is its biggest trading partner, according to the analysts.

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“There’s very little that Europe can do actually, because whatever you do there will be damage,” said Frans-Paul van der Putten, founder of Dutch consulting firm ChinaGeopolitics. “That is the core of the problem: you will damage your security or your economic position, or both.”

The Dutch government took the highly unusual step of seizing control of Nexperia from its Chinese owners on September 30, citing national security concerns and invoking a law that had been sitting idle since 1952.

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The move raised serious concern in China and led Beijing to place export controls on certain components made by the firm’s China unit in response, threatening to disrupt the supply chains of European carmakers that rely on Nexperia’s products.
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