China has tightened export controls on chips vital to car production, the country’s commerce ministry said on Sunday.
Exceptions are given to exports made by Chinese-owned NEXPERIA for civilian use, this should help carmakers who are afraid of European production being hit in Europe.
At the same time, China also lifted an export ban to the US on certain materials important to the semiconductor industry.
The announcement marks an easing of trade tensions between Beijing and Washington after President Xi Jinping said that Donald Trump had agreed to unilaterally withdraw and suspend other measures for a year.
In October, the Dutch government took control of NEXPERIA, based in the Netherlands but owned by the Chandy Company Wingtech, to try to protect European markets in semiconductors in cars and other goods.
In response, China blocked exports of the company’s finished chips. However, this was said earlier this month it will start banning ban As part of a trade deal struck between the US and China.
While NEXPERIA is based in the Netherlands, about 70% of the chips produced in Europe are sent to China to be finished and re-exported to other countries.
If it controls the company, the Dutch government said it took the decision because of “serious management deficiencies” and to prevent the company’s chips from being used in an emergency.
But when China blocked exports of chips from Nexperia, there were concerns that it could cause global supply chain issues.
In October, the European Auto Industry Association warned shoppers that Nexperia’s chips would only last a few weeks.
Last month, EMEA director general Sigrid de Vier told the BBC that “the shortages are imminent”.
Volvo Cars and Volkswagen have warned that a chip shortage could lead to temporary closures of their plants, and Jaguar Land Rover has also said that a lack of chips threatens its business.
But on Saturday, EU Commissioner Commissioner Maros Sefcovic announced in a post on x that China has agreed to “further simplify export procedures for NEXPERIA chips” and that it will “provide priority to export requirements
“The close engagement with the Chinese and Dutch authorities continues as we work on a sustainable framework that ensures the full recovery of the semiconductor.”
In its statementChina’s commerce called on “the EU to continue to gain influence in urging the Netherlands to correct the mistakes made as soon as possible.”
Meanwhile, the suspension of a ban on exports of “dual-use items” related to Gallium, Germany, antimony and super-hard materials to the US began until November 27, 2026.
The ban on exports of goods and materials with both civilian and military use was announced in December 2024.
On Friday, China also announced the suspension of other export controls related to expanded curbs on some new earth meters and Lithium batteries.