How Wingtech became the latest cautionary tale in the US-China tech war
Some analysts link seizure of subsidiary by Dutch authorities to new rule issued by the US Bureau of Industry and Security
Chinese electronic-parts supplier Wingtech is the latest company to face a setback amid the US-China tech war, after Dutch authorities froze control of its local subsidiary in a sign of new risks for Chinese tech firms’ overseas investments.
The rare move by local authorities was the latest example of increasing operational risks for Chinese tech companies amid intensified US-China tensions, analysts said.
The case was likely “a dispute within the company’s internal management”, but authorities could have factored political considerations into their rulings, said Kenny Ng, a strategist at Everbright Securities International.
“Three to five years ago, the areas most affected were typically mineral resources and raw materials development,” he said. “With the recent trade tensions and tech competition between China and the US, such cases will likely become more common in the tech sector.”
A commentary on China’s nationalist website Guancha.cn said that the case was a warning shot to all Chinese businesses venturing abroad for risks of “commercial issues being politicised”.