Government Seizes Chinese-Owned Chipmaker 🤯

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In today’s email:

  • Security Shock: 🇳🇱 Dutch seize Nexperia citing national security concerns.

  • Hidden Force: âš“ What really stops 100,000-ton ships at sea.

  • Collision Course: đźš˘ Chinese coast guard rams Philippine vessel.

  • Cyber Attack: đź’» Hacker group claims DSV breach.

TRADE NEWS

Netherlands Seizes Nexperia in Stunning Security Move

In a bold and unprecedented intervention, the Dutch government has taken control of Nexperia, the Netherlands-based semiconductor company owned by China’s Wingtech, citing serious governance failures and national security concerns. While day-to-day production continues, The Hague now holds the power to block or reverse any management decisions it considers a threat to Dutch or European technological sovereignty.

The move was executed under the Goods Availability Act, a Cold War–era law allowing the government to intervene in companies deemed critical to national interests. A recent court ruling found significant irregularities within Nexperia’s governance structure, paving the way for state action. Wingtech’s chairman, Zhang Xuezheng, has been suspended from the board, and a new independent director will assume decisive voting control.

Semiconductors are the backbone of modern technology — from vehicles to smartphones to defense systems — and have become the focal point of global strategic competition. Although Nexperia is not a producer of cutting-edge chips, its components are vital for Europe’s industrial supply chains.

This move reflects a growing global trend: Western governments are no longer willing to tolerate Chinese control over critical tech infrastructure. The Dutch government’s action signals a readiness to override investor rights when national or strategic security is at stake.

For global trade, it’s a watershed moment. It underscores how political risk has become inseparable from cross-border investment in sensitive sectors like semiconductors. As the EU races to strengthen its own chip capabilities, this takeover may serve as both a warning and a turning point — redefining how nations balance open markets with the need to safeguard their technological independence. Watch Clip

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VIDEO OF THE WEEK

Anchors Don't Work The Way You Think âš“

Massive ships weighing over 100,000 tonnes can stop and stay perfectly still in the open ocean for days at a time. But the real secret behind how they do it lies deep below the surface — and it’s not what you think.

TRADE SNIPPETS

US and South Korea near deal on $350 billion investment pledge. US Treasury Secretary Scott Bessent said talks with Seoul are progressing on how to implement South Korea’s $350 billion investment pledge, noting he expects an agreement “within the next 10 days.”

Chinese coast guard rams Philippine vessel near disputed island. A Chinese coast guard ship used a high-pressure water cannon and rammed the Philippine vessel BRP Datu Pagbuaya near Thitu Island, escalating tensions in the South China Sea territorial dispute.

DSV hit by hacker attack, claims group; operations unaffected. A hacker group called Coinbasecartel says it breached logistics giant DSV’s systems, accessing unknown amounts of data. DSV confirms external mention of the incident but says its systems and operations remain unaffected.

China slaps sanctions on US-linked maritime firms amid trade standoff. China has targeted five US subsidiaries of South Korea’s Hanwha Ocean with sanctions in retaliation for US actions against Chinese maritime sectors, deepening tensions in global shipping.

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