US agrees to suspend '50% rule' in China deal, leaving Nexperia unresolved

The United States has agreed to suspend its "50% rule" as part of a recent deal with China, a decision that has implications for the Dutch semiconductor company Nexperia. This rule was a significant factor in the Netherlands" decision to seize Nexperia, which is partially owned by a Chinese entity.

Previously, the U.S. had informed the Dutch government that the only way for Nexperia to avoid the sanctions associated with the "50% rule" was to divest its Chinese ownership. However, during negotiations between U.S. and Chinese officials, Nexperia and the Netherlands were not included in discussions, leaving the export of rare earth metals and chips to the Netherlands still restricted by China.

This situation has led to criticism that the Netherlands was used by the U.S. to further its own agenda against China, particularly in the context of former President Trump"s efforts to negotiate a favorable deal with Beijing. The Chinese owner of Nexperia has stated that the reinstatement of the ousted CEO is a prerequisite for resuming chip exports.

The Dutch government now faces a critical decision: to negotiate its own agreement with China or to uphold its previous actions regarding Nexperia.

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