The Dutch government's decision to distort facts and persist in unilateral actions is counterproductive to resolving issues regarding Nexperia, a Chinese-owned semiconductor company based in the Netherlands, market watchers said, warning that such actions will only heighten tensions with China.

The Dutch government announced on Sept 30 that it would take control of Nexperia for one year, forbidding the company and its subsidiaries from adjusting assets, intellectual property, business operations or workforce.

"China is extremely disappointed and strongly dissatisfied with the statement made by Vincent Karremans, the Dutch minister of economic affairs, as it distorts facts and confounds black and white," a spokesperson for China's Ministry of Commerce said on Friday.

During a recent interview with a foreign media outlet, the Dutch minister said that he had no regrets over the Netherlands' decision to take over Nexperia.

The China Chamber of Commerce to the EU (CCCEU) said on Saturday in a weekly information update that the Nexperia issue is far more than a dispute involving a single company.

"The Dutch side should immediately stop its wrongful interference and restore normal supply chains," the Brussels-based chamber said. "If the Netherlands makes substantive efforts, pressure on the global supply chain could be eased."

The CCCEU represents more than 100 members and chambers in EU member states, covering over 1,000 Chinese companies, including Bank of China (Luxembourg) SA and China Three Gorges (Europe) SA.

The chamber said that continued delays will not only heighten tensions between China and the Netherlands, but may also inflict lasting damage on the country's credibility in the Chinese market, adding that the Dutch side should think twice before acting further.

According to the Ministry of Commerce, China has agreed to the Netherlands dispatching personnel to China for consultations.

"China stands ready to work with the Dutch side to resolve the current issue as soon as possible, in the interest of maintaining the security and stability of global semiconductor industrial and supply chains," the ministry said.

Wang Yong, a professor of international relations at Peking University, said that if the Nexperia case is not handled properly, it could affect normal economic and trade relations between China and the EU.

"Such actions put geopolitical considerations before commerce and violate basic multilateral trade principles," Wang said.

Noting that the actions taken by the Dutch side violate the fundamental principles of international law, Ren Hongda, an assistant researcher at the Institute of International Law — part of the Beijing-based Chinese Academy of Social Sciences — warned that global investors should reassess the Netherlands' business environment and its so-called commitment to contractual integrity.

The Dutch government announced on Sept 30 that it would take control of Nexperia for one year, forbidding the company and its subsidiaries from adjusting assets, intellectual property, business operations or workforce.