Nexperia Seized: How US Pressure on Dutch Government Sparked a Global Supply Chain Crisis

Trump slapped tariffs on everyone, leaned on allies to squeeze Chinese firms, and now the pain is ricocheting straight back onto American and European manufacturers.

Washington pushed the Hague to move against Nexperia, the Chinese-controlled semiconductor firm, and the Dutch government complied with a seizure. Nobody counted on the blowback being this severe.

Beijing's counter-punch was swift: Nexperia's Dongguan factory cut off the Netherlands. Since 70% of Dutch Nexperia's output flows from that Dongguan facility, the supply cut crippled the operation and left European customers scrambling. Germany's Bild reported October 21 that Volkswagen is preparing production halts on key models due to Nexperia chip shortages—Golf production at the Wolfsburg headquarters goes first, with the Tiguan line close behind.

Entire Industry Caught in Crossfire

This isn't just Volkswagen—it's the whole automotive sector's nightmare. Nexperia semiconductors don't ship directly to car plants; they're embedded in components by tier-one suppliers, which means the disruption cascades through the entire value chain.

German carmakers are short on chips; American carmakers, on the other hand, are short on parts.

The Wall Street Journal documented it on October 19: an assembly line at a Michigan factory building premium Jeep SUVs ground to a halt last week due to  parts shortage.

The automotive supply chain is a sprawling global web of enterprises, and now multiple components are failing simultaneously.

Analyst Fiorani from consulting firm AutoForecast Solutions put it bluntly: "So many problems erupting at once—it's once in a lifetime. We've never seen this. Having every problem explode simultaneously is both unexpected and extremely difficult to manage".

China Fires Back

And, China, the primary target of Trump's global trade war, in retaliation against Trump administration tariffs, cut off supplies of critical rare earth minerals.

A bizarre and escalating geopolitical dispute has intensified fears that global automotive production could descend into chaos within weeks.

The takeaway is stark:

 American Elites Start Looking East

Trump's retrograde policies have American elites envying China. The New York Times published an article October 22 titled "Silicon Valley Has China Envy, and That Reveals a Lot About America" and here's what it documented:

“In social media posts, podcasts, interviews and newsletters, the elites of the American tech sector are marveling at China’s speed in building infrastructure, its manufacturing might and the ingenuity of the A.I. company DeepSeek. At the same time, they are lamenting aging infrastructure and cumbersome regulations in the United States, and an economy that can’t seem to make screws or drones, or the machines that manufacture them.”

Some are calling for launching America's DeepSeek project, issuing industrial manifestos filled with Chinese references, and even emulating China's tech industry's harsh "996" work culture—working six days a week, 9 AM to 9 PM daily.

Venture capital firm Andreessen Horowitz recently warned in a blog post: "As China races forward, moving goods, people and information at machine speed, we risk being stuck in the past."

Among Silicon Valley leaders and policy-focused Democrats, an obsessive mood toward China pervades—mixing curiosity, anxiety, and envy. Long-held perceptions about China are being reassessed.

The Times noted that Chinese companies once dismissed as copycats have suddenly become case studies in efficiency and scale. China's top-down, state-led system is no longer viewed as a political liability but recast as an exemplar of efficient execution.

The Times argues that whether viewing China as a cheater or a juggernaut, both narratives are simplified reactions to complex reality. But their prevalence reveals a deep-seated American psychological state—the nation is struggling to adapt to a world where it's no longer the sole source of technological progress.

An Identity Crisis

Afra Wang, a Silicon Valley-based tech writer, stated: “For Americans, the idea that the future is now being created elsewhere — not in the United States — is a hard reality to accept. This isn’t just about technology; it’s a question of identity.”

This identity crisis extends beyond technology. When American tourists post videos on social media of China's bridges, high-speed rail, and urban skylines, those so-called "abundance Democrats" frustrated by America's inability to build housing and high-speed rail are also affected by this sentiment.

The Times argues that Americans' newfound admiration for China both highlights how little Americans know about the country and reflects many people's disillusionment with their own nation.

Tech leaders' vigilance isn't without merit. America's old "innovate-manufacture-export" model collapsed after massive manufacturing outsourcing. Now America primarily handles design, while China increasingly takes on the "manufacture-produce" role that once belonged to America. In a tense geopolitical environment centered on supply chains, manufacturing capability has become a critical capacity with both strategic and survival value.

The difficulties extend far beyond conventional manufacturing sectors. The fusion of AI and hardware has become crucial. Venture capitalist Marc Andreessen put it this way: Machines today are "the hardware version of software; they are the embodied version of A.I." He added, "The car is not just steel and glass anymore — it's a robot on wheels."

Andreessen acknowledges that China "is ahead on everything involved in building physical things," holding substantial advantages in the convergence of hardware and AI production.

Silicon Valley's growing attention to China is a positive signal.

Chinese entrepreneurs spent decades studying America. Today, American companies are racing to develop machines smarter than humans. However, if Silicon Valley studies China deeply, it will discover that China's AI industry is not obsessed with artificial general intelligence （A.G.I.）—large language models. Chinese entrepreneurs focus more on applying AI to services, equipment, and manufacturing.

Former Google chairman Eric Schmidt, in a New York Times op-ed, called for Silicon Valley to reduce its obsession with A.G.I. and learn from Chinese counterparts to integrate AI into daily life. This exemplifies Chinese pragmatism versus American idealism once again.

Envy as Self-Reflection

The Times believes Silicon Valley's envy of China ultimately reflects more about America's own condition, mirroring the nation's struggles after losing confidence. Equally worth remembering is that U.S.-China tech competition is an ongoing race—a race without end.

After reading The Times article, the conclusions are clear:

American elites are beginning to acknowledge that China is moving from catching up to surpassing America, with the U.S. falling behind in many important areas.

But calling it Silicon Valley falling into obsession and envy of China is, to some extent, a reaction against Trump. China values science and innovation, while Trump is taking a backward path, massively cutting research funding. Many biotech projects Silicon Valley invested in have ended prematurely. The government has also cut new energy subsidies, ruining investments in new energy projects.

All U.S. government decisions are anti-science and arbitrary—how can America's West Coast elites not envy China?

Deep Throat

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

Last Friday, Trump flat-out torpedoed a much-anticipated zero-emissions deal for the global shipping industry, smashing it apart at the United Nations' International Maritime Organization (IMO). The Financial Times lays it all bare: to kill the net-zero shipping pact, Trump didn’t just lean on the usual diplomatic muscle—Washington went full gangster. Think raised port fees, outright bans on ships passing through America, and direct threats, and even personal intimidation of diplomats and their families, with entry bans waved in their faces like warning flags.

The Financial Times lays it out: over a dozen diplomats, foreign officials, and industry insiders watched the US throw diplomacy in the mud at last month’s London summit. Washington came armed with bullying tactics, determined to smash the net-zero shipping pact by brute force.

US Bullying Blocks IMO’s Green Shipping Deal—Vote Delayed a Year. IMO website image.

US officials didn’t bother with backroom deals—they stalked the halls, cornering diplomats from Africa, the Pacific, and the Caribbean. The message was simple: cross the United States, and your ships might not reach America. Rock the boat, and your family could be locked out. These weren’t idle whispers. The intimidation played out in broad daylight during coffee breaks.

Social Media Taunts, Policy Upends

Trump didn’t bother hiding his true feelings. On social media, he slammed the agreement as a “global green shipping tax scam.” But this wasn’t just venting. In April, most countries had already green-lit the framework. It was set to become real policy—until Trump’s team blew it up, forcing a one-year “pause.” The global momentum froze on the spot.

One diplomat cut to the heart of it: “It’s like the streets of New York.” His country got the warning firsthand—keep backing the deal, and watch your sailors’ visas disappear. US port fees? Those would rise too. Another attendee was even more blunt: IMO bigwigs were left gobsmacked. “It’s like dealing with the mafia,” they said. “You don’t need details. You just know: cross us, and you’ll pay.”

The US State Department kept mum on the intimidation claims. Instead, American officials handed out praise to Greece and Cyprus. Those two broke rank from the rest of the EU—they cast abstention votes in the big one-year adjournment, even after they already gave the framework the green light back in April.

Secretary of State Marco Rubio, ahead of the IMO meeting in London, issued a joint statement with senior Trump officials warning that the administration was "evaluating sanctions on officials sponsoring activist-driven climate policies that would burden American consumers, among other measures under consideration." As Greece and Cyprus sided with the U.S., much of Europe—and the world—reacted with surprise.

Global Rules or American Muscle?

Chatham House’s head of global economy Creon Butler didn’t mince words. The US, he said, has ditched long-standing diplomatic etiquette. Instead, Washington's now muscling countries into backing its stance—especially on climate.

America Threatens: Support This, Your Crews and Ports Pay.

“In the very short term this might work, but in the medium term it increases the chances that non-US countries will conclude they cannot work with the US, making agreements independently among themselves which simply work around the US,” he said. Sooner or later, the rest of the world will ink deals that leave America in the dust.

The pushback reached fever pitch at the IMO. Brazil, among others, called out the methods “that should not ever be used among sovereign nations”. Washington wasn’t just rattling individuals—entire capitals, from Bangladesh to Japan and Indonesia, got notes threatening diplomatic smackdowns.

But let’s step back. The drive for a net-zero shipping pact isn’t about feel-good climate slogans.

As Niu Tanqin from Xinhua puts it: The pact itself is a brass-tacks response to global warming’s mounting cost. Whether you like it or not, global warming is simply an undisputable fact. Everyone is scrambling to stall off the climate catastrophes looming on the horizon.

So, in order to squeeze carbon emission: if your ship emits less than the set limit, you’re rewarded. Above the cut-off, you pay. China, the EU, Japan, India, Brazil—all were in. Even the big shipping companies joined the chorus.

Only a handful of oil states—think Saudi Arabia, Russia, the UAE—pushed back. Pacific island nations, unconvinced the pact was tough enough, simply abstained.

Trump Says Global Warming’s a Scam—US Walks Out.

Then, everything changed. Once Trump 2.0 manifested, the US flipped from supporter to saboteur. In his mind, climate change is a hoax—or worse, a Chinese plot to corner American interests. Stopping this agreement wasn’t just policy—it was personal. He didn’t mind stooping low—pulling out every trick in the high school bully’s playbook: pressure, threats, and outright intimidation to make sure America got its way.

One official wasn’t shy: “It was completely exceptional. I have never heard of anything like this in the context of an IMO negotiation. These people [being threatened] are just bureaucrats, they are civil servants.”

If international law becomes a mere cheap disguise, you can bet real power will be the one pulling the strings.

Pause Button Pressed—World Left Reeling

Now, the deal waits on ice for another year, while “the world stares, shell-shocked”—witnesses to a new era of American brinkmanship.

Not the first time, either. Just look at tariffs: if Washington’s unhappy, it writes its own tax bill—no debate required. Venezuela and Nigeria have both fielded threats of military action; Canada and Panama know the taste of territorial intimidation. Lawless? That’s par for the course.

  

But payback, as always, has a funny way of coming due. Today, the US bullies island nations and slaps down climate claims. Tomorrow, who’s next? When “might makes right” replaces rules, every nation that depends on order will lose out. True justice may come late—but it never skips its date. Chip away at the pillars of fairness, and sooner or later, you bury the very house you live in.

The real question: how long can America’s strong-arm show go on before the world walks out?