export

China has lifted export controls on computer chips vital to car production, the country’s commerce ministry said on Sunday.

Exemptions have been granted to exports made by Chinese-owned Nexperia for civilian use, it said, which should help carmakers who had feared production in Europe would be hit.

At the same time, China has also paused an export ban to the US of some materials that are crucial in the semiconductor industry and suspended port fees for American ships.

The moves mark an easing of trade tensions between Beijing and Washington after President Xi Jinping and his US counterpart Donald Trump agreed in October to reduce tariffs on each other and pause other measures for a year.

In October, the Dutch government took control of Nexperia, which is based in the Netherlands but owned by Chinese company Wingtech, to try to safeguard the European supply of semiconductors for cars and other goods.

In response, China blocked exports of the firm’s finished chips. However, it said earlier this month it would begin easing the ban as part of a trade deal struck between the US and China.

While Nexperia is based in the Netherlands, about 70% of its chips made in Europe are sent to China to be completed and re-exported to other countries.

When it took control of the company, the Dutch government said it had taken the decision due to “serious governance shortcomings” and to prevent the company’s chips from becoming unavailable in an emergency.

But when China blocked exports of chips from Nexperia, there were worries that it could create global supply chain issues.

In October, the European Automobile Manufacturers’ Association (EMEA) had warned Nexperia chip supplies would only last a few weeks unless the Chinese ban was lifted.

Earlier this month, the EMEA’s director general Sigrid De Vries told the BBC that “supply shortages were imminent”.

Volvo Cars and Volkswagen had warned that a chip shortage could lead to temporary shutdowns at their plants, and Jaguar Land Rover also said the lack of chips posed a threat to its business.

But on Saturday, EU trade commissioner Maros Sefcovic announced in a post on X that China had agreed to “the further simplification of export procedures for Nexperia chips” and it would “grant exemption from licensing requirements to any exporter” provided the goods were for “civilian use”.

“Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting. stable predictable framework that ensures the full restoration of semiconductor flows.”

In its statement, China’s commerce ministry called on “the EU to continue exerting its influence to urge the Netherlands to correct its erroneous practices as soon as possible.”

Prof David Bailey from Birmingham University’s business school told the BBC’s Today programme that the actions of China were a “wake-up call” for the motor industry.

“The Dutch government may well have had good reasons to try and take control but it hadn’t thought through the implications of that,” he said. “The retaliation from China was swift and it was brutal.”

He said there was a need to find alternative processing sites, “maybe in south east Asia, or Europe”, and for the industry to keep bigger stocks of its products in case of shortages.

Meanwhile, the suspension of a ban on exports of “dual-use items” related to gallium, germanium, antimony and super-hard materials to the US came into effect on Sunday and will be in place until 27 November, 2026.

The ban on the exports of goods and materials that can have both civilian and military uses was announced in December 2024.

China’s transport ministry also said port fees charged on US-linked ships would be suspended for a for a year, effective 0501 GMT Monday.

On Friday, China also announced the suspension of other export controls related to expanded curbs on some rare earth materials and lithium batteries.

President Donald Trump greets Chinese President Xi Jinping before a bilateral meeting at the Gimhae International Airport terminal, on Thursday, October 30, 2025, in Busan, South Korea. File Photo by Daniel Torok/The White House/UPI | License Photo

Nov. 9 (UPI) — China’s Commerce Ministry announced Sunday that it would suspend a ban on the export of some rare earth metals to the United States as trade tensions ease.

The affected metals include gallium and germanium, which are used to make advanced semiconductors for computing, as well as antimony, which is used to make explosives, and super-hard metals such as tungsten, which is used in armor-piercing ammunition. The fifth metal covered by the suspension of the ban is graphite.

China’s Commerce Ministry had announced the export ban in December 2024 ahead of the second administration of President Donald Trump, “in order to safeguard national security and interests and fulfill international obligations such as non-proliferation.”

It said in a statement Sunday that the ban on the five metals would be suspended until Nov. 27, 2026.

The move comes after Trump met with Chinese President Xi Jinping in South Korea last month ahead of the Asia-Pacific Economic Cooperation summit.

The suspension is part of a broader economic deal struck during that meeting, which both governments described as a step toward stabilizing bilateral trade relations after several years of heightened tensions.

According to a White House fact sheet, China agreed to effectively eliminate its export controls on rare earth elements and other critical minerals, while issuing “general licenses” that allow shipments of gallium, germanium, antimony, tungsten and graphite to continue flowing to U.S. manufacturers and their suppliers.

The White House said the agreement would help ensure American companies have reliable access to essential materials used in advanced technologies, while Beijing would benefit from renewed purchases of agricultural goods and other exports.

The deal also included Chinese commitments to halt the export of fentanyl precursors, ease restrictions on U.S. semiconductor firms, and expand purchases of U.S. farm products.

China’s statement on Sunday did not reference the broader trade framework or the general licenses described by the White House. Instead, it said only that the suspension of the 2024 export ban would last for one year — marking a discrepancy in American and Chinese framing of the deal.

China controls the vast majority of the world’s supply of each of the five rare earth metals, and analysts have warned that prolonged export restrictions could disrupt global manufacturing tied to them.