The small European business caught in the great trade war between the United States and China

Late last month, the growing rivalry between Washington and Beijing for control of technology supply chains spilled over into the Netherlands. The Dutch government, under pressure from American authorities, took control of the Chinese chip manufacturer Nexperia.

Nexperia, headquartered in the Netherlands but owned by Chinese company Wingtech, operates a complex, global-scale supply chain typical of chipmaking. The company designs older types of chips used in automobiles and electronics and employs thousands of people in Europe, the United States and Asia. Its factories press thin silicon wafers in Britain and Germany, and assemble and test chips in China, the Philippines and Malaysia.

On September 30, the Dutch government said that business decisions would now be determined by its economy minister, Vincent Karremans. Hours earlier, the United States had expanded the scope of a trade blacklist that meant Nexperia would face strict controls on its operations because its owner, Wingtech, was already on the list.

In a statement released on Sunday revealing its action, the Dutch government said it had taken steps to prevent Nexperia’s products from becoming unavailable in an emergency. But documents released Tuesday by an Amsterdam court showed that months earlier, U.S. officials had lobbied the Dutch government over ownership of the company.

The United States Department of Commerce imposed trade restrictions on Wingtech last December. In June, U.S. officials told the Dutch Foreign Ministry that Nexperia could be next in line unless the company replaces its Chinese CEO, Zhang Xuezheng.

“The fact that the CEO of the company is still the same Chinese owner is problematic,” the U.S. officials said, according to court documents.