Europe is taking desperate measures amid a shortage of chips. What the media is writing

The harsh US measures against Chinese manufacturers forced the Netherlands to take a desperate step: to seize control of a Chinese company located in the country. China's measures have left European manufacturers without the necessary chips and threaten to paralyze the work of Volkswagen, the largest carmaker. What the foreign media write about it is in the Izvestia digest.

Bloomberg: the reason for the shortage of chips in the political confrontation

Last week, the Dutch government gained control of the Chinese company Nexperia located in the country, applying the Cold War law. The transistors and diodes that the company produces are critically important for everything from cars to medical devices, and Nexperia accounts for 10% of the global market. The parent Chinese company Wingtech, which owned Nexperia, was blacklisted by the United States.

The standoff has its price, and retaliatory restrictions by Beijing on shipping products abroad from Nexperia's Chinese factories have prompted European automakers to warn of shortages. European players such as Volkswagen AG and Robert Bosch GmbH are trying to find alternative sources of chips. The Dutch government is facing a problem: Nexperia is too Chinese for the Dutch, too Dutch for the Chinese, and too politically complicated to be easily sold to a new owner. This is a sensitive issue for a European country that is on the verge of parliamentary elections.

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De Telegraaf: the crisis with the manufacturer of microchips will be solved in Brussels

German car giant Volkswagen was forced to suspend production of Golf models due to a dispute between the Netherlands and China over the manufacturer of Nexperia chips from Nijmegen. Acting Prime Minister Dick Schoof, who arrived at the EU summit in Brussels, said he was actively working to solve the problem. The Netherlands took control of the Neumengen plant out of concern that the company would move its operations to China, and in early October, a Dutch court dismissed Wingtech CEO Zhang Xuezheng from his post as Nexperia CEO after complaints of poor management. Schoof stresses that these measures "are not directed against China."

According to Schoof, Dutch Economy Minister Vincent Carremans is in close contact with his European counterpart, in particular, with the German minister. Vincent Carremans had a conversation with China's commerce minister earlier this week, but it did not lead to an immediate breakthrough.

Reuters: retaliatory measures from the United States may escalate the trade war

The Trump administration is considering a plan to restrict software exports to China, from laptops to jet engines, in response to Beijing's latest round of restrictions on exports of rare earths, a U.S. official and three other sources said. This is not the only plan, but it will make it possible to implement US President Donald Trump's threat to ban the export of "mission-critical software" to China, limiting global shipments of goods that contain American software or were produced using it.

China opposes the imposition of unilateral sanctions by the United States and intends to "take decisive measures to protect its legitimate rights and interests," the country's representative said. This move could disrupt global trade with China, especially on technology products, and could cost the U.S. economy dearly if fully implemented.

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Financial Times: automaker Tesla loses profits amid war on duties

Tesla said its profits fell by more than a quarter due to increased costs related to tariffs in the United States, the loss of revenue from emissions quotas and the huge costs of switching to robotics and artificial intelligence. Net profit decreased by 29% compared to last year. While investors were counting on sales growth due to consumer excitement before the cancellation of benefits for electric vehicles, expenses, including for specialists in the field of artificial intelligence, reduced the company's profits.

At first, investors were optimistic that Tesla would benefit from the alliance of CEO Elon Musk with US President Donald Trump. But the negative consumer reaction to Musk's political activities, large-scale policy changes regarding electric vehicles and a public quarrel between the US president and the richest man in the world have undermined the automaker's financial position.

Axios: China's technical superiority threatens the United States

Republican Senator from Nebraska Deb Fischer is surprised by the pace of development of China's military arsenal, she said on Wednesday at the Axios "Future of Defense" summit. According to her, China has achieved dizzying success in the development of its platforms and weapons, "they are growing and developing." Fischer is a senior member of the U.S. Senate Armed Services Committee.

The senator visited Taiwan in late August and later called on her colleagues to deepen U.S. relations with the self-governing island. As Fisher said in September, the U.S.-Taiwan partnership has been based on democracy, freedom, and economic opportunity for decades. A stronger Taiwan means a stronger United States, and vice versa.