The Dutch just seized the Chinese owned Wingtech Company operating in Netherlands citing conditions as set out in Goods Availability Act, (being used for the first time in its history) such as national security & possible event of Nexperia semiconductors being unavailable in the market.
What is the counter strategy Wingtech Company would contemplate is the question in the minds of most business strategists.
There are three related incidents:
a) Suspension of the Chinese CEO
b) A non-Chinese director being appointed
c) The company’s shares are placed under the
control of a third-party trustee.
The intent
of the Goods Availability Act has nothing in common with the grounds of seizure
as these relate to wartime situations where there could be a possible shortage
of food & essentials.
It is purely an act
of vendetta. Nexperia in Netherlands uses inputs imported from
mainland China. In a way it is an assembly plant. More than half of the assembly
line as regards to Nexperia semiconductors are located outside Netherlands.
The counter strategy
suggested is as follows:
1. Continue to proceed with legal action in appeal courts to reverse the situation in addition to filing papers at the WTO
2. Allow the current inventory of chips to run through
3. Cease further inputs from mainland be shipped to Netherlands based Wingtech Company
4. Tighten the control of Rare Earth Elements (REE) exported to Netherlands as a whole
5. Suspend all trade talks with the Dutch
Navigating
strategy amid geoeconomics require both offensive as well as defensive manoeuvres
in business strategy. Nexperia story would be written in the annals of history as
regards to strategy execution and strategy evaluation.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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