In brief
Beijing has decided to loosen a previously imposed export ban on chips to Europe following the Dutch takeover of Nexperia, a Chinese-owned chipmaker. The Netherlands acted under a Cold War-era law citing governance issues, which spurred concerns among carmakers about chip shortages. With 70% of Dutch-produced chips sent to China for completion, the easing of export restrictions could be vital for the European auto industry, as existing supplies dwindle. China's latest move follows a series of international discussions between leaders, hinting at potential cooperation in the semiconductor sector.
Beijing has said it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia - a Chinese-owned chipmaker based in the Netherlands.
In September, the Netherlands used a Cold War era law to take over the company after citing serious governance shortcomings and to prevent the chips from becoming unavailable in an emergency.
In response, China said it would not re-export completed Nexperia chips to Europe which raised concern among carmakers. One association had described the move as alarming.
Around 70% of chips made in the Netherlands are sent to China to be completed and re-exported to other countries.
In a statement on Saturday, China said that it would comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria. However, it has not specified what that could entail.
It also went on to criticise the Hague for what it called improper interference in the internal affairs of enterprises and blamed it for the current disruption of global production and supply chains.
The Dutch-controlled firm told customers it would stop sending chips back to China to be processed, according to a letter this week seen by the Reuters news agency.
Last month, the European Automobile Manufacturers' Association (ACEA) had warned Nexperia chip supplies would only last a few weeks unless the Chinese ban was lifted.
Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages, the group said.
The latest plans by Beijing to relax its export controls have emerged after Donald Trump and Xi Jinping met in South Korea earlier this week.
Trump later said the leaders discussed chips, while Beijing's post-meeting readout did not explicitly mention any area of trade.
The White House is expected to release a fact sheet later today detailing its new trade agreement with China. Reuters reports that it will also announce the resumption of Nexperia exports.
In December 2024, the US government placed Wingtech on its so-called entity list, identifying the company as a national security concern.
In the UK, Nexperia was forced to sell its silicon chip plant in Newport, after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.
