The Netherlands signaled plans to hold talks with China to resolve the ongoing stalemate surrounding Nexperia, a semiconductor firm at the center of rising geopolitical tensions.

The dispute has implications not only for Sino-Dutch trade relations but also for the global automotive chip supply chain.

Dutch Economic Affairs Minister Vincent Karremans said on Sunday that Beijing believes the Netherlands acted in concert with the U.S. to intervene in Nexperia’s operations. However, he stressed that the government’s move was aimed at preventing the company’s former Chinese-born CEO from transferring key business operations and intellectual property out of Europe.

“Chinese automakers also rely on Nexperia’s chips,” Karremans said in a television interview, adding that the two sides should work together to resolve the issue. He noted that Dutch diplomats are actively mediating and that he expects to meet with Chinese officials in the coming days. “This matter has reached the highest level of discussion,” he said.