According to a SCMP report, the main Dongguan assembly plant of Nexperia—the China-owned, Netherlands-based chipmaker—has sharply scaled down production in recent days, reducing working hours and idling one third of the machines in one part of the production area. The Dutch government recently took over operations at Nexperia, citing lapses in governance and fearing technology transfer to the China parent company.
Scaled down production is a natural consequence of the takeover, and will have consequences for the global semiconductor supply chain. It also exemplifies what appears to be the European approach to dealing with China in the current geopolitical environment. They appear to be taking a stance and sticking to it, whatever consequences that may bring.
Looking at other approaches to China from the West. In the US, everything is relatively chaotic, whether that be a part of a longer term decline or just a symptom of the Trump administration. Either way, actions seem inconsistent. For the UK, as it has become more isolated after Brexit, the country is wavering between options and some people seem to think the only choice is to do a deal with China, the result of which is likely greater dependency on China in the future and an upswing in Chinese influence.
Of the three, the EU’s approach seems to have the most promise for the future, and while decision making there is often criticized as being slow, they do seem to have a direction that could potentially lead to a more significant role on the world stage.