Simmering tensions with China look poised to deliver another blow to European industry. In the latest flashpoint, the Dutch government’s move to sideline chipmaker Nexperia’s Chinese owners has triggered a response from Beijing that threatens to restrict key supplies for carmakers.
As China cut Nexperia’s Chinese factory off from the Dutch parent, the company has warned Japanese automotive customers that it may no longer be able to guarantee supply. Nexperia’s products also end up in vehicles made by carmakers like Volkswagen. Chip shortages will likely hit European automotive suppliers within a week, we’re told.
The Dutch-China spat comes as Beijing today unveiled a five-year plan focused on increasing self-reliance in technology, seeking to insulate itself from foreign pressures.
Some Europe-based carmakers are already under severe strain. Stellantis’s ousted CEO Carlos Tavares wrote in a new book that the maker of Jeeps and Fiats faces a potential breakup, with the group’s French, Italian and US operations going their separate ways.
Russian officials are confident they’ll find ways to soften the impact from US sanctions against the country’s biggest oil producers, although there will be a hit to the state budget. US President Donald Trump’s blacklisting of Rosneft and Lukoil will be countered by deploying Russia’s network of oil traders and its shadow fleet, an official said. India’s oil refiners indicated today that they’ll all but stop buying.
