When the Dutch government invested in home-grown chipmaker Smart Photonics this summer, it was a departure for a country with a hands-off approach to business.
A small company with big plans, Smart Photonics was struggling to attract financing to scale up production of its next-generation chips, whose applications include self-driving cars and datacenters.
Smart’s chief technology officer, said in an interview at the company’s offices outside Eindhoven, in the southern Netherlands. “The most serious interest came from Asia,” specifically Japan, Singapore, Taiwan and from China, he said.
In late June, just as it looked like Smart Photonics was about to be lured to Asia, the Dutch government stepped in with 20 million euros ($23.7 million). A similar sum came from a consortium including a government-backed agency, PhotonDelta, whose chief executive, Ewit Roos, raised the alarm at the Ministry of Economic Affairs as soon as he learned of the company’s predicament. “The government acted swiftly and decisively,” Roos said by phone.
he Dutch government says that its decision was taken to retain key technology and wasn’t driven by concerns over China. Even so, its investment was just the latest example of a more defensive economic stance that has accompanied a hardening of the country’s attitude to Beijing.
The shift has “been very noticeable, because the Netherlands has always been that kind of small, open, free-market economy that wanted nothing to be touched and everything to be open,” said Agatha Kratz, an associate director at Rhodium Group in Paris.
Beijing still regards the Netherlands as an important trade partner and investment destination, even though the Netherlands is getting “harsher” toward China, said a researcher with the government-affiliated Chinese Academy of Social Sciences who asked not to be identified due to rules for speaking with media. One reason for that change is China is becoming more competitive economically with Europe, the researcher said.
On the political front, the Netherlands angered Beijing this year by changing the name of its representation in Taiwan, which China regards as a renegade province. That prompted the Chinese embassy in The Hague to request clarification from the government. Taiwan’s president pointedly tweeted her gratitude to the representation’s outgoing head.
Read more at:
How China Made the Netherlands Question the Free Market - Bloomberg
No comments:
Post a Comment