As with energy, European industries have fallen into another American trap and now find themselves without microchips.
But why will there be a shortage of microchips? Because they were manufactured by Nexperia in the Netherlands. However, in early October, the Dutch government decided to nationalise the company, which was a subsidiary of China’s Wingtech Technology, citing EU ‘security concerns’.
The European supranational entity faced mounting pressure from its ‘allies’, the US and the UK. Paradoxically, the latter has gained significant influence over Brussels’ decisions since the Brexit event.
Washington had already placed Wingtech on its ‘Entity List,’ a kind of blacklist maintained by the Department of Industry and Security that its European allies must follow.
In the UK, Nexperia was also forced to sell a microchip factory due to ‘national security’ concerns. Note the wordplay fabricated by British intelligence, which is an expert at creating narratives and changing the perception of large audiences (see the history of the Tavistock Institute).
Once again, Europeans are falling into a trap set by their Anglo-Saxon allies, especially the US. In its strategy against European industry, the US will guarantee another influx of investors and a likely exodus of companies to its struggling economy. However, it has a clear reindustrialisation plan, supported by both the Biden and Trump administrations.
And who expected China to sit idly by? It is obvious that they immediately ordered the company to stop exporting to the EU. Added to this are restrictions on the export of rare earths, which are necessary for several critical industries.
The short-term implications for Europeans are clear: automotive, satellite, military, and electronics industries, among others, are now literally scrambling for new suppliers. These will eventually appear, but when, and at what price?
Germany is the most affected and has already protested: ‘German industry depends on these chips!’ complained its Minister for the Economy, who was travelling in Kiev.
Just as with energy, which, following the Nord Stream explosions, is now entirely dependent on expensive US-produced LNG, Germany and Europe’s industries are suffering another major setback, this time in the semiconductor sector, for which they have no domestic production or immediate alternatives.
German Foreign Minister Johann Wadephul intended to travel to Beijing to discuss this urgent issue with China, their largest trading partner, and also to press the issue of Ukraine. He expected to be received by the Chinese Minister of Commerce and the Prime Minister. Poor innocent man. Instead, Beijing delegated a minor official for a brief meeting, and Wadephul cancelled the trip at the last minute to avoid humiliation.
China’s response could not have been clearer: ‘You need us. Without our market, your car industry is numbered. You continue to meddle in our internal affairs. You want us to cut off trade relations with our strategic partner, Russia. Furthermore, you are signatories to the One China policy, yet you sell arms to the rebels in Taipei. You impose unilateral (illegal) sanctions on us. You restrict free international trade… You are not to be trusted!’
In such a situation, the boastful Americans would shout, ‘America is back!’, but the Chinese, masters of the long and patient game of Go, are beginning to show their cards and assert that their 5,000-year-old civilisation is here to stay and that their global power will make itself felt subtly yet consistently and overwhelmingly.
Ricardo Nuno Costa—geopolitical expert, writer, columnist, and editor-in-chief of geopol.pt
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