Politicized interventions by judicial or regulatory authorities could only disrupt the highly globalized semiconductor supply chain and inflict far-reaching damage on the industry, experts said, warning that such moves risk undermining technological progress and raising costs for all participants.

Their comments came after a Dutch court's latest decision to order an investigation into previous allegations of mismanagement at chipmaker Nexperia's Chinese parent Wingtech and to uphold its October ruling — restricting the Chinese owner's shareholder rights over Nexperia and suspending Nexperia's former CEO, Wingtech founder Zhang Xuezheng.

In response, China on Thursday once again urged the Netherlands to create favorable conditions for resolving internal disputes at the chipmaker, and to safeguard the stability of the global semiconductor supply chain.

"The root cause of the Nexperia issue lies in the Dutch side's improper administrative intervention in the company's operations," said Foreign Ministry spokesman Lin Jian at a regular news conference on Thursday, adding that Beijing will continue to support Chinese enterprises in safeguarding their legitimate rights and interests.

Wingtech also said early Wednesday that it was "profoundly disappointed and strongly dissatisfied" with the latest ruling and would continue to "exhaust all legal means to restore the company's full control over Nexperia".

The Dutch government's decision to uphold the earlier ruling is damaging the interests of tens of thousands of employees, more than 25,000 customers as well as the global industrial chain, the company said.

"If the shipment of automotive chips doesn't resume — quickly — it's going to disrupt auto production in the US and many other countries, and have a spillover effect in other industries," John Bozzella, president and CEO of the Alliance for Automotive Innovation, told Reuters in an earlier interview.

Netherlands-based Nexperia produces silicon wafers in Europe that are then shipped to its plant in China for cutting and packaging into semiconductors.

"The semiconductor industry, by its very nature, is a quintessentially globalized sector. The production of a single chip traverses multiple countries," said Wang Wen, dean of Renmin University of China's Chongyang Institute for Financial Studies.

Any politicized intervention, Wang said, will fracture supply chains and send costs soaring — ultimately harming every participant.

In response to developments in the case, China restricted exports of Nexperia's finished products from its facilities in the country starting Oct 4, a measure that was later relaxed in an attempt to maintain global semiconductor supply chain security and stability amid auto chip demand.

"Only by reducing non-market intervention can we truly advance global technological progress and ensure that its benefits are universally shared," Wang added.

Calling the ruling "self-contradictory and logically flawed", Wingtech also urged the Dutch side to conduct a full and fair investigation, restore the truth and hold relevant personnel accountable.

"We reaffirm that the only solution to save Nexperia, stabilize the global supply chain and protect the legitimate rights and interests of all stakeholders is to immediately and unconditionally revoke all interim measures and restore Wingtech's legitimate shareholder rights," it said.

In a separate development, China will begin levying countervailing duties on certain dairy products imported from the European Union starting Friday, the Ministry of Commerce announced on Thursday, issuing its final determination after an 18-month investigation.

The duties, set at rates ranging from 7.4 percent to 11.7 percent depending on the product category and exporter, will remain in force for five years, the ministry said.