China exempts Nexperia chips from export controls
China has lifted export controls on computer chips vital for auto production, the country’s commerce ministry said on Sunday.
The report stated that China-owned Nexperia’s exports for civilian use were granted exemption, and said that this should help automakers who fear that production in Europe will be negatively affected.
At the same time, China also halted its ban on exports to the United States of some vital materials in the semiconductor industry.
The announcement signals an easing of trade tensions between Beijing and Washington after President Xi Jinping and his US counterpart Donald Trump agreed in October to lower tariffs on each other and pause other measures for a year.
In October, the Dutch government took control of Nexperia, which is headquartered in the Netherlands but owned by the Chinese company Wingtech, in a bid to secure European supplies of semiconductors for cars and other goods.
In response, China blocked exports of the company’s finished chips. But it was said earlier this month will begin to ease the ban As part of the trade agreement signed between the USA and China.
Although Nexperia is headquartered in the Netherlands, approximately 70% of chips produced in Europe are shipped to China for completion and re-exported to other countries.
When the Dutch government took control of the company, it said it made the decision due to “serious management deficiencies” and to prevent the company’s chips from becoming unusable in case of emergency.
However, when China blocked chip exports from Nexperia, there were concerns that this could create global supply chain problems.
In October, the European Automobile Manufacturers Association (EMEA) warned that supplies of Nexperia chips would only last a few weeks unless the Chinese ban was lifted.
Earlier this month, EMEA managing director Sigrid De Vries told the BBC that “supply shortages are imminent”.
Volvo Cars and Volkswagen have warned that chip shortages could lead to temporary closures of their plants, and Jaguar Land Rover has also said chip shortages pose a threat to its business.
However, on Saturday, EU trade commissioner Maros Sefcovic Announced in a post on X He said China had agreed to “further simplify export procedures for Nexperia chips” and would “grant exemptions from licensing requirements to any exporter” provided the goods were for “civilian use”.
“We continue to engage with both Chinese and Dutch authorities as we work on a permanent, stable, predictable framework that will enable the full restoration of semiconductor flows.”
In the descriptionChina’s Ministry of Commerce called on the EU to “continue to use its influence to encourage the Netherlands to correct its erroneous practices as soon as possible.”
Meanwhile, the suspension of the ban on exports of “dual-use products” related to gallium, germanium, antimony and superhard materials to the United States went into effect on Sunday and will remain in effect until November 27, 2026.
The ban on the export of goods and materials for both civilian and military use was announced in December 2024.
On Friday, China announced the suspension of other export controls related to some rare earth materials and expanded restrictions on lithium batteries.
