A Dutch court suspended Nexperia’s former chief executive Zhang Xuezhen – who founded its Chinese owner Wingtech – citing mismanagement.

Wingtech’s shares trade on the Shanghai Stock Exchange and it is partially owned by the Chinese government. According to court papers released by the Dutch authorities last month in relation to the government’s takeover of Nexperia, US authorities had raised concerns about the boss of the chip company before it was taken over.

The documents contained evidence that Dutch authorities had told Nexperia, it may be able to secure an exemption from the US list if there was a change in leadership because the “Chinese owner is problematic”.

“It is almost certain that the CEO will have to be replaced to qualify for the exemption from the entity list,” authorities told Nexperia, according court documents.

Back in late September, the Dutch government invoked a Cold War-era emergency law to take control of a Nexperia, Chinese-owned chip company that has operations in the country.

This move set off a chain of events that sent shock waves through the global motor industry – already affected by US tariffs and China’s curbs on rare earth exports.

In a statement to the Netherlands parliament, the minister of economic affairs cited “serious governance shortcomings and actions within Nexperia, posed a threat”.

“This measure is highly exceptional and intended solely to ensure that the continuity of supply and safeguarding of critical technologies for the Dutch and European economy are not put at risk,” the statement said.

Beijing reacted furiously, accusing the Netherlands of political interference.