China’s Commerce Ministry announced on Sunday that it has granted exemptions to export restrictions on Nexperia-manufactured chips intended for civilian use, a move expected to ease supply shortages that have disrupted the global automotive industry.
The decision marks Beijing’s most significant step yet toward de-escalating the standoff with the Netherlands over control of Nexperia, a Dutch-based chipmaker owned by China’s Wingtech Technology. The export curbs, imposed after the Dutch government seized control of Nexperia on September 30, had caused widespread shortages of chips essential for carmakers and suppliers worldwide.
China did not specify what qualifies as “civilian use,” but the announcement follows reports from German and Japanese automakers that deliveries of Nexperia’s Chinese-made chips have resumed.
The dispute began when the Dutch government accused Wingtech of planning to relocate Nexperia’s European production to China, citing risks to Europe’s economic security. In response, Beijing halted exports of Nexperia’s packaged chips, most of which are produced in China.
Following an October 30 meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Beijing said it would begin reviewing applications for export exemptions — a process that appears to have now taken effect.
Despite this thaw, analysts warn that China-EU relations remain strained, and tensions will persist until the ownership and operational control of Nexperia are fully resolved.
“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the Commerce Ministry said, calling for an end to the Dutch intervention.