A Dutch court will hold a hearing on 14 January to decide whether a formal investigation into alleged mismanagement at chipmaker Nexperia should proceed. The case before the Amsterdam Enterprise Chamber will hear arguments on whether the suspension of CEO Zhang “Wing” Xuezheng and the forced transfer of shares from the Chinese parent firm, Wingtech, to a court-appointed trustee are warranted. In a rare emergency move, the Chamber previously ordered these measures without hearing from both parties first.
There are more legal procedures pending and being considered. Aside from appealing Wing’s suspension to the Supreme Court, Wingtech is preparing to initiate international arbitration under bilateral investment treaties with the Netherlands and Hong Kong. If the matter remains unresolved, the company says it will seek up to 8 billion dollars in compensation. Such a procedure will likely take years.
The Chinese government, meanwhile, continues pressuring its Dutch counterpart to “correct its mistake” and cease “improper administrative interference,” the Ministry of Commerce wrote in a statement. Following diplomatic talks, The Hague has already suspended an intervention in Nexperia’s management that was issued separately from the court.
