China announced exemptions to export controls on Nexperia chips for civilian applications, aiming to alleviate supply shortages for the automotive industry.
This decision signals Beijing’s intent to ease pressures from export restrictions imposed after the Dutch government took control of Nexperia, a key producer of chips for automotive electrical systems, which is owned by the Chinese company Wingtech.
Although the Chinese commerce ministry did not define “civilian use,” it follows reports from German and Japanese firms indicating a resumption of deliveries of Nexperia’s chips produced in China. However, tensions between China and the Netherlands, and the broader EU, are expected to persist until disputes over Nexperia’s ownership are resolved.
The Dutch government intervened on September 30, citing concerns over Wingtech’s plans to relocate production from Europe to China, which it perceived as a threat to economic security. In retaliation, China halted exports of finished chips but announced an acceptance of exemption applications following a summit between U.S. and Chinese leaders.
The ministry emphasized its commitment to protecting global chip supply chains while urging the EU to assist in persuading the Netherlands to reverse its decision regarding Nexperia.
With information from Reuters