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Trump Administration Pushes Out Official Who Banned Chinese Vehicles

The Trump administration has pushed out a senior U.S. Commerce Department official whose office played a key role in effectively barring Chinese passenger vehicles from the American market on national security grounds, according to people familiar with the matter.

Elizabeth “Liz” Cannon has resigned as executive director of the Office of Information and Communications Technology and Services (ICTS), which was created in 2022 to investigate supply-chain threats posed by foreign adversaries. Sources said Cannon would have been reassigned if she had not stepped down, and that the administration plans to replace her with a political appointee. Her departure is expected to take effect on February 20.

Cannon’s exit comes amid a broader slowdown in proposed restrictions on Chinese technology imports. The Commerce Department recently withdrew plans to restrict Chinese drones and has put on hold rules targeting medium- and heavy-duty trucks from China. However, regulations finalized last year that effectively block Chinese passenger cars over data-security concerns remain in force.

President Donald Trump has sent mixed signals on the issue, saying he would welcome Chinese automakers that build factories and hire workers in the United States. The Commerce Department said recent staffing changes would strengthen its ability to address national security risks from foreign technology.

Analysts warn Cannon’s departure could weaken U.S. expertise in assessing long-term technology threats, even as Washington and Beijing maintain a fragile trade truce.

China Grants Export Exemptions on Nexperia Chips to Ease Global Supply Strain

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.

U.S. Weighs Sweeping Curbs on Software Exports to China Amid Rare Earth Dispute

The Trump administration is considering a sweeping new set of export restrictions targeting China’s access to U.S. software, in retaliation for Beijing’s tightening of rare earth shipments. The plan, discussed by senior officials and confirmed by multiple sources, could block exports of products ranging from laptops to jet engines that rely on U.S.-made or U.S.-designed software.

The proposal, which mirrors export controls once imposed on Russia, is part of a broader strategy to pressure China ahead of President Trump’s meeting with President Xi Jinping in South Korea later this month. While the plan remains under discussion and may not be implemented, U.S. Treasury Secretary Scott Bessent said “everything is on the table,” including coordinated measures with G7 allies.

Analysts warned the move could have far-reaching global implications, disrupting supply chains and triggering economic retaliation from Beijing. Emily Kilcrease, a former U.S. trade official, said software restrictions would be “extraordinarily difficult to implement” and could backfire on American industry.

The Chinese embassy condemned Washington’s potential actions as “unilateral and coercive,” vowing to protect China’s interests if the U.S. proceeds. U.S. markets reacted nervously to the report, with the S&P 500 closing down 0.5% and the Nasdaq falling about 1%.