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Dutch government takes control of Chinese-owned chipmaker Nexperia

cnbc.com

521–530 of 668 posts

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#521
post #473

Earlier quoted context omitted.

I am sort of surprised we even have an arm of government quick and authoritative enough to be able to intervene here. I always assumed the government would just let any frogs boil.

Indeed, how did they even figure this out?

in the NRC article it says that board members started to complian that the CEO was "making choices that were not in the interest of the company". Four days later they were fired.

"It was at that moment that Nexperia alerted the ministry of Economic Affairs"

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#522

> ...according to a Google translation. Can they really not be bothered to hire human translators? You would expect as much from a high profile news source like CNBC.

Maybe it's not a cost thing but a speed thing. You don't want to get scooped by another English-language news source.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#523
post #492

Earlier quoted context omitted.

[flagged]

Erm - there is such thing as the concept of strategical industries. And it is neither a European thing or a modern thing either, but don't let that stop you from spouting a narrative where Europe is the bad guy in an international landscape where they have transferred voluntarily or not such much technology to China.

Almost everything can be seen as strategic.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#524

Earlier quoted context omitted.

China’s foreign investment framework is formally open (especially after WTO accession), but: - Certain industries are restricted or prohibited for foreign investors. - The “Negative List for Foreign Investment” explicitly bans or limits foreign participation in many areas (e.g., media, education, data services, telecoms, mining). - Some sectors require a Chinese joint venture (you can’t have 100% ownership). So even…

> The “Negative List for Foreign Investment” explicitly bans or limits foreign participation in many areas (e.g., media, education, data services, telecoms, mining) That's a very good for them, by looking at the list. Look at how big a problem the EU now has with its reliance on US tech and military. Sovereignty is very important in strategic industries and in those that allow foreign powers to influence your populat…

> Volkswagen is a cherry picked example, look at Tesla, which isn't a joint venture. BMW still uses a JV but now holds 75% of BMW Brilliance etc.

No cherry picking. Purely random. FWIW, according to my quick research there are only 3 vehicle manufacturers that operate and manufacture in China while retaining 100% ownership as a foreign company. They are Tesla (Gigafactory in Shanghai), Lexus (EV plant in Shanghai), and Scania (truck manuf. in Rugao). If this list is comprehensive, then it is very very short, and my original point stands which is that technically the market might be open (barring the exceptions I mentioned), but in practice it is pretty closed because it is so hard to enter due to all the barriers that are put up.

I think it is fair to say, and I think you would agree, that on a spectrum of free trade, China doesn't rank very high.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#525
post #481

Earlier quoted context omitted.

Seems like business as usual. It's just that the industry it operates in is kinda sensitive subject for everybody right now.

To be clear the specific intervention used here is very rare. It's really not business as usual, but it's also not nation state shenanigans luckily. Just regular old grift.

Yeah, the intervention is unusual, but what the companies tried to do is completely common scheming.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#526
post #498

Earlier quoted context omitted.

Edits aren't possible, but what the body of replies (so far) miss is that this is discussing the weaponisation motive versus the profit motive. The Dutch taking ownership of this company is not to divert its profits, it's to prevent the weaponisation of the company against the host country. There is an expectation that the Dutch have reasonable evidence of this. It's also set against a background of the foreign count…

Exploiting a foreign country’s own resources such that the profits are sent to foreign owners to the point of impoverishment instead of letting that country profit from those resources by socializing the profits to its people - surely that harms that country. Your distinction between profit and weaponization is superficial at best.

> Exploiting a foreign country’s own resources such that the profits are sent to foreign owners to the point of impoverishment

I mean where would the West be if it wouldn't do exactly that in Africa, Southern America and surely other places (and did it in even more extreme ways, back when people didn't care that much).

ex. cocoa production in Africa, with European companies being the ones doing and profiting from it.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#527
post #403

Earlier quoted context omitted.

The age of globalism and unfettered free trade is over, and good riddance.

Yes let's go back to times where marrying a girl from a neighbouring town would raise eyebrows. So much better than "globalism"

You should realise this is quite the conflation. Might as well say we are going back to the age before penicillin because that was also "back then." I personally don't advocate for a return to the past for its own sake.

perhaps the US is doing that for other reasons (RFK Jr.) but the good news is that in the post US hegemonic order, that country can go ahead and collapse into flames and the rest of the world won't be taken down with it.

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#528
post #5

Some more context from a dutch news source[0]: The ministry of economic affairs intervened out of a fear that crucial technological skills and capacities will leave the Netherlands and Europe. The ministry stated in a press release[1] that there was a threat of a "knowledge leak" (w/e that means exactly) and a possible threat to the European economy. After this intervention the Dutch government can now stop or revers…

Everybody is a fan of free access and capital markets, until a foreign entity purchases something of importance. It’s a continuation of recent trends and closing markets. Nobody in their sane mind would allow a company like ASML or the likes to be purchased by competitors. But the irony is that when a non-European entity were to do something like this, e.g. nationalize their oil or mining etc. industry or a firm, the…

Fair points, but in this case the company has not been nationalized. The Dutch gov can veto certain decisions, but that's not at all the same as the company becoming an asset of the state (nationalization).

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#529

Earlier quoted context omitted.

The age of globalism and unfettered free trade is over, and good riddance.

free for me but not for thee

I know how China operates and I'm not at all sympathetic to their cause

Re: Dutch government takes control of Chinese-owned chipmaker Nexperia

#530

Earlier quoted context omitted.

It gets a lot less contradictory when you realize the principles are window dressing for the interests. Early America had no regard for intellectual property rights because all the good media came from abroad - then we built Hollywood and saw the light. The west pushes deregulation and free trade because we've got the money and the only thing that can keep us from sucking a market dry is government intervention. The…

> It gets a lot less contradictory when you realize the principles are window dressing for the interests. I don't think this is the epiphany you think it represents. The whole point of laws and regulations is to protect interests. Do you think that any regime passes and enforces laws that are detrimental to their best interests? In free market economies, laws and regulations are put in place to foster competition, an…

You're not saying "governments have interests" (which we can agree is obvious), youre saying the public principles invoked are contingent on whether they advance those interests and get swapped out the moment they don't. That's not a banal "laws protect interests", it's a claim about which interests and when the rhetoric changes.

"Window dressing" from the cited comment isn't about the existence of law, it's about the story told to legitimate a choice already made on interest grounds. When a principle helps the home coalition's position, it's foregrounded, when it threatens it, it's narrowed, reinterpreted, suspended etc. The principle is the sales pitch and the selection and timing are about power.

Countries push openness most intensely in sectors where their firms can penetrate foreign markets (finance in the 1990s, software/IP heavy goods in the 2000s etc). Because openness abroad protects their capital, openness at home is celebrated until it starts eroding strategic capacity. Then come security reviews, export controls, local content rules, subsidies etc and everything is wrapped in principled language.

> Internal competition and level playing fields are promoted as they pressure companies to improve their competitiveness.

Until internal competition threatens a national champion in a strategic race. Then we let consolidation happen (or subsidize it) and call it "industrial policy". We laud the disciplining function of foreign competition until the foreign rival is big enough to discipline us, then it's "unfair trade", "security risk", "systemic rivalry" etc

For decades, openness to China was "win win globalization". As China's capability rose, the same flows (capital, tech, data etc) got relabeled as channels of leverage. Now we create controls, seizures/forced restructurings and targeted decoupling justified by a different principle than yesterday's.

So basically your "policy serves interests" is a truism that ignores the commenter's claim about how principles are instrumentalized. I mean free markets, antitrust, IP, security, sovereignty etc aren't a tight contradiction free doctrine. States pick the item that best advances leverage at that moment and explain it with whatever noble language fits. It's a realistic description of how advanced economies behave when the balance of advantage shifts.

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