Everyone who has gone overseas keeps saying, 'Money abroad isn’t that easy to earn.'

The first 'black swan' event facing Chinese enterprises expanding overseas is often not competitors—but rather local compliance requirements and sanctions. Between 2018 and 2020, Wingtech Technology executed a series of capital operations, acquiring 100% equity in Nexperia Semiconductor for approximately RMB 34 billion. This 'snake swallowing an elephant'-style acquisition was once hailed as a landmark event signaling China’s entry into the global upstream semiconductor industry. Under Wingtech’s control, Nexperia’s gross margin surged from 25% in 2020 to 42.4% in 2022. By October 2024, Nexperia had fully repaid all its prior debt and achieved a 'zero-debt' operational status. Yet resistance began emerging during this expansion phase. In July 2021, Nexperia acquired NWF—the UK’s largest chipmaker. Just one year later, however, the UK government—invoking its newly enacted National Security and Investment Act—compelled Nexperia to divest NWF. By the end of 2023, Nexperia was forced to sell NWF to U.S.-based Vishay for USD 177 million. On September 30, 2025, Wingtech suffered an even greater unexpected blow. The Dutch Ministry of Economic Affairs and Climate Policy invoked the Commodities Supply Act—a law originally enacted in 1952—and issued a ministerial order citing 'supply chain stability' as justification to forcibly assume management control over Nexperia, effectively sidelining its Chinese CEO. This marked the first time the law had ever been activated since its enactment. The takeover unfolded swiftly and cleanly—even bypassing standard judicial procedures. A lawyer closely involved in the case privately remarked: 'They don’t argue with you; they simply change the rules.' Although the Dutch Minister of Economic Affairs announced a suspension of the ministerial order two months later, the interim measures imposed by the Enterprise Court remain in effect. To this day, Chinese control over Nexperia remains significantly constrained. A similar script has played out in South America. In 2018, Tianqi Lithium—one of China’s leading lithium enterprises—acquired a 23.77% stake in Sociedad Química y Minera de Chile (SQM) for USD 4.066 billion (approximately RMB 25.9 billion), becoming SQM’s second-largest shareholder. This was the largest acquisition by a Chinese company in Chile—and delivered substantial returns: between 2018 and 2024, cumulative recognized gains from this investment approached RMB 10 billion. At the end of 2023, Chile’s president announced a nationalization plan for the lithium industry, aiming to secure state control over this strategic resource through public-private partnerships. On May 31, 2024, SQM signed a 'Partnership Agreement' with Chile’s state-owned copper company Codelco, agreeing to merge core lithium operations from the Atacama Salt Flat into a joint venture. Starting in 2031, Codelco will consolidate financial statements and hold majority equity. Under the agreement, the Chilean government will receive 70% of the joint venture’s operating profits between 2025 and 2030—and 85% thereafter. Tianqi Lithium reacted strongly, asserting that such a major transaction involving the divestiture of core assets required approval by SQM’s extraordinary general meeting. However, Chile’s Financial Market Commission ruled the deal fell within the board’s authority and did not require shareholder ratification. Subsequently, Tianqi Lithium launched legal proceedings in Chile—but its claims were dismissed by the Santiago Court of Appeals. In January 2026, Chile’s Supreme Court upheld the lower court’s ruling in a final judgment, resulting in Tianqi Lithium’s comprehensive legal defeat.

Tianqi Lithium: Trapped by industry cycles—can it prevail with 'lithium'?

By: Da Chengzi under the starry sky Lithium is the lightest metal and the most chemically reactive metal among all known elements. I have always firmly believed in its enormous market application potential and broad prospects. —Jiang Weiping, Chairman of Tianqi Lithium I. A lithium industry leader stripped of influence; Eastern tycoon enters the salt flats Back in 2018, the potash industry entered yet another phase of consolidation after prolonged fragmentation. World potash giant Potash Corporation of Saskatchewan (Potash Corp, hereinafter 'PCS') and Agrium Inc. planned a merger. To satisfy antitrust regulatory requirements in certain countries—including China—PCS agreed to divest equity stakes in four chemical plants, including one named SQM. SQM—Sociedad Química y Minera de Chile—is no ordinary company. It not only holds the world’s largest production capacity for potassium nitrate and iodine but also ranks first globally in lithium carbonate production. News of the impending divestment caught the attention of a heavyweight: on May 17, 2018, Tianqi Lithium (stock code: 002466), led by Jiang Weiping, signed an agreement with PCS to acquire 23.77% of SQM’s Class A shares at USD 65 per share, for a total transaction value of USD 4.066 billion (RMB 25.893 billion). Adding its previously held Class B shares, Tianqi Lithium ultimately held 37.5% of SQM’s voting rights—tying with PAMPA as the largest shareholder. Both appointed three directors each to SQM’s eight-member board plus three independent directors. Note: SQM implements a dual-class share structure—Class A and Class B shares carry identical dividend rights but differ in voting power. This acquisition was profoundly significant for Tianqi Lithium: SQM holds the vast majority of mining rights over the Atacama Salt Flat—one of the world’s three premier lithium-rich salt flats. With its high lithium concentration, massive reserves, mature extraction infrastructure, and low operating costs, the Atacama Salt Flat is a flagship mining project actively promoted by the Chilean government. In essence, Tianqi Lithium instantly ascended to the top tier of global lithium industry players. II. A bold move triggers an urgent inquiry from the Shenzhen Stock Exchange; high-risk investors dump shares aggressively Yet soaring to the top tier is never easy. On May 17, 2018, SQM’s Class A shares closed at USD 55.10 per share, while its Class B shares closed at USD 54.96. Tianqi Lithium paid an 18.18% premium despite lacking controlling interest—and financed the bulk of the purchase with debt. These loans mature on November 29 of this year, with USD 1.2 billion eligible for a three-year extension. To secure the loans, Tianqi pledged multiple equity stakes and provided joint and several guarantees. Failure to repay would spell total collapse. Orange Brother believes Chairman Jiang must be a big fan of Liang Jingru’s song 'Courage'—otherwise, how else could he muster such audacity? What kind of business generates over RMB 16 billion in cash inflow within just two years—not even counting interest? The Shenzhen Stock Exchange, alarmed by the situation, immediately issued a formal inquiry letter, posing 26 probing questions covering pricing rationale, financing arrangements, and antitrust review. Tianqi’s 82-page response could essentially be distilled into two clichéd phrases: 'The industry’s outlook is rosy beyond measure,' and 'Salt-flat lithium extraction gallops forward like a steed.' No matter how round the pie looks, hundreds of billions in debt weigh heavily and concretely on the company’s balance sheet. On June 20, 2018—the day trading resumed following the announcement—the stock opened at its daily lower limit and closed down 9.73%; the next day, it plunged another 7.01%.

Wealth High Governance Capital Ltda Takes Position in Sociedad Quimica y Minera S.A.

Apr 30, 2026

Wealth High Governance Capital Ltda acquired a $20.99 million stake in Sociedad Quimica y Minera, making it the firm's fourth-largest holding. The investment represents 3.9% of total holdings following a quarterly acquisition.

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Wealth High Governance Capital Ltda Takes Position in Sociedad Quimica y Minera S.A.

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Pictet Asset Management Initiates New Position in Sociedad Quimica y Minera S.A.