China Committee Member Questions Nexperia Reversal
Rep. Raja Krishnamoorthi, D-Ill., the ranking member of the House Select Committee on China, is asking Commerce Secretary Howard Lutnick to tell him whether allied governments were consulted before the White House announced that chip exports from Nexperia's China factory would resume, suggesting that the EU was caught flat-footed at the development. Nexperia makes semiconductors used in automobiles.
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In his letter to Lutnick, released Nov. 11, Krishnamoorthi also asked, "What steps are being taken to ensure that future U.S. trade and export control negotiations involving semiconductor supply chains are coordinated with key allies such as the Netherlands to prevent unilateral actions that could undermine collective security objectives?"
The letter said China's decision to cut off exports from the Nexperia factory was in response to the Netherlands nationalizing the firm, which has its headquarters in that country but was Chinese-owned before the seizure. Krishnamoorthi said the Netherlands did so partly because the U.S. 50% rule, which is now paused, would have made Nexperia a sanctioned entity.
"Perhaps most concerning, it appears that the Nexperia situation remains in flux," Krishnamoorthi wrote. "On Saturday, China’s Ministry of Commerce issued the following statement: 'China has taken concrete measures to grant exemptions for compliant exports for civilian use. ... We welcome EU to continue exerting its influence to urge Netherlands to correct its erroneous practices as soon as possible.'"
"This case highlights the urgent need for the United States to coordinate closely with its allies on technology and supply chain security," he said. "This coordination is essential to ensure that U.S. actions strengthen, rather than undermine, shared objectives on semiconductor export controls and the protection of our collective economic and national security interests."