The Japan Times - Battle over Chinese-owned chipmaker Nexperia rages in Dutch court

The firm, based in the Netherlands but whose parent company is China's Wingtech, has been the subject of a standoff between Beijing and the West that threatened to cripple car manufacturers that rely on its chips.

The Dutch state in September invoked a 1952 law to effectively seize control of the company, sparking fury in Beijing.

The Amsterdam-based Enterprise Chamber also played a major part in the battle over Nexperia in October when it suspended the firm's Chinese CEO, Zhang Xuezheng, also known as Wing, citing concerns over his management.

Lawyers for Nexperia on Wednesday accused Wingtech of a "scorched earth" policy in its bid to wrest control of the company.

"Wingtech is doing everything to destabilise Nexperia, already under pressure from a crisis situation," said one of Nexperia's lawyers, Jeroen van der Schrieck.

Zhang Xuezheng did not appear at the hearings. His lawyer said he was not in a strong enough state to attend, as this case was taking a personal toll on him.

"The intervention (by the Dutch government) and especially the way it was handled, is incomprehensible for Mr Wing," said Jan Bart van de Hel, a lawyer for the Chinese tycoon.

"It should never have happened. The situation degenerated needlessly," he added.

Dirk-Jan Duynstee, a lawyer for the Wingtech company, said "the real reasons that led the minister to intervene remain a mystery."

Judges are not expected to make a ruling on Wednesday on whether to order an investigation but may announce a date for a decision.

The court could order an investigation "if it has valid reasons to doubt the sound policy and business operations at Nexperia", it said in a statement.

If the court does decide to order an investigation, it can also maintain or amend its decisions made in October.

If however the court decides no investigation is required, the decisions it made in October will no longer be in force.

In late October, following trade talks between China's President Xi Jinping and his US counterpart Donald Trump, Beijing agreed to resume exports of Nexperia chips halted over the row.

In response, the Dutch government said it was suspending its emergency takeover move as a "constructive step" hailed by Beijing.

But while the political clash has died down for the moment, all eyes are on the court to see whether it will order a probe.

K.Abe--JT