Nexperia’s China unit has openly rejected an order from its Dutch headquarters in Nijmegen, dismissing John Chang as its vice-president of global sales and marketing. According to the South China Morning Post, such a move would have violated local company and labor laws, rendering the directive unenforceable under Chinese labor law, according to the company. This announcement shows how Nexperia China, which is only a subsidiary of the Europe-based company, is vying for control of the chip maker.
The issue began in early October, when the Dutch government seized control of Nexperia from Wingtech, its Chinese owner, citing the Goods Availability Act, which allows it to block attempts to move crucial technical knowledge and capabilities outside of Dutch and European soil. What makes this such an earth-shaking move is that this is the first time that the law has been used since it was enacted in 1952 during the height of the Cold War. Although the primary catalyst behind the takeover was the alleged $200 million misappropriation by the CEO of company assets, the ongoing trade war between the U.S. and China has certainly added more geopolitical pressure to the drama.
