The Dutch government has intervened to take effective control of technology group Nexperia, which is owned by Chinese group Wingtech Technology.

The decision comes amid a growing rift between China and the West over the development of technology such as computer chips and semiconductors, which are essential components for the manufacture of artificial intelligence (AI) technology.

Here is more about what the Dutch government announced, why and what happens next.

What has the Dutch government announced?

In a statement released on Sunday, the Dutch Ministry of Economic Affairs said it had invoked the “highly exceptional” Goods Availability Act to intervene and take control of Nexperia on September 30.

The Goods Availability Act allows the Netherlands to intervene in privately owned companies in exceptional circumstances, such as if the government perceives a threat to the country’s economic security or if it is necessary to ensure that critical goods remain available.

Why has the Dutch government taken this step?

The move followed an emergency hearing by the Dutch Enterprise Chamber on October 7, which concluded that there may be “valid reasons to doubt sound management at Nexperia under the leadership of former CEO Zhang Xuezheng”, a statement from the company said.

The Dutch Enterprise Chamber is a special division of the Amsterdam Court of Appeal, which hears corporate law cases and other matters that could