Dutch Chip Fight With China Is a Sign of Panic: Lionel Laurent

The Senkaku Paradox describes how small stakes can lead to big conflicts at a time of great-power rivalry. While the term’s origins lie in military warfare, it can also be applied to the escalating economic standoff between the Netherlands and China over microchip firm Nexperia. The mounting risk of a chip shortage triggered by politics, rather than disease or armed conflict, should be a warning for Europe to deal with its big trade-war vulnerabilities.

Last week, the Dutch government seized control of Netherlands-based, Chinese-owned Nexperia, invoking a Cold War-era law designed to secure access to critical goods in an emergency. The ...