LONDON — British MPs have expressed alarm at the alleged theft of intellectual property at the U.K. arm of chip-making giant Nexperia.

The Dutch government decided to take over the Chinese-owned company headquartered in the Netherlands in September.

Dutch authorities believe that former Nexperia CEO, Zhang Xuezheng, had transferred trade secrets from the company’s plant in Manchester to a site he owned in China, according to multiple figures granted anonymity to speak about a sensitive matter.

Zhang had also planned to lay off staff, paving the way for an effective dismantling of European operations, the figures added.

The U.K. government declined to comment on the substance of these allegations, which were first reported by the Dutch newspaper NRC and Reuters. 

But officials suggested the government did not recognize the Dutch claims about the theft of trade secrets from the Stockport plant. 

However, senior lawmakers told POLITICO that the accusations represented a danger to British industry, which demands closer attention. 

Matt Western, a Labour MP who chairs the Joint Committee on the National Security Strategy, said: “I’m deeply concerned by these allegations and will be watching developments closely.” 

He warned: “In the U.K., as in Europe, some of our most critical supply chains are highly exposed to malicious actors. It’s vitally important that we ensure businesses have all the tools they need to reinforce resilience.” 

He added that his committee would consider the matter as part of its inquiry on the National Security Strategy. 

The accusations deal another blow to the U.K.’s efforts to repair relations with Beijing, after a collapsed spying case sparked a heated political row in Westminster. 

‘This is what China does’ 

Nexperia was at the center of an earlier controversy in the U.K., when the government ordered it to divest its acquisition of semiconductor chip firm Newport Wafer Fab in 2022, over concerns about Chinese ownership.  

China hawks argue that the allegations regarding Nexperia in Manchester demonstrate an ongoing threat to Britain’s security.  

Iain Duncan Smith, former Conservative Party leader, said: “This is what China does all the time. It poses a threat to the way we live our lives, industry, and the individual freedom of Hong Kong dissidents.” 

Luke de Pulford, who leads the Inter-Parliamentary Alliance on China, commented: “One wonders how many bald transgressions have to be seen before the government accepts what every onlooker can plainly see: China presents a serious threat to U.K. security and resilience.” 

A U.K. government spokesperson said: “We are monitoring the situation closely and remain in touch with Dutch counterparts regarding actions taken in relation to Nexperia.” 

A spokesperson for Nexperia said: “Nexperia Manchester site continues to operate as usual,” and the measures taken by the Dutch government “have restored good governance in the company, ensuring that no undue influence can be exercised by the former CEO on decision making processes.” 

Wingtech, which still legally owns Nexperia and is chaired by Zhang, has been approached for comment.

At the start of October, Beijing halted the export of Nexperia components from China, following the move by the Netherlands, sending ripples through the Western auto industry, which uses the chips for things like locks, speedometers, and climate control systems. 

The impact is being felt at Nissan’s plants in Japan and a Honda site in Canada, which has scaled back production as a result. 

The European Automobile Manufacturers’ Association (ACEA) warned Wednesday that production lines are “days away” from closing due to the shortage.