Beijing has stated it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia - a Chinese-owned chipmaker based in the Netherlands. In September, the Netherlands employed a Cold War era law to seize control of the company, citing 'serious governance shortcomings' and to ensure chip availability in emergencies.
In retaliation, China announced it would not re-export completed Nexperia chips to Europe, which raised alarms among car manufacturers, with one association calling the move 'alarming'. Approximately 70% of chips produced in the Netherlands are sent to China for completion before being exported elsewhere.
In a recent statement, China indicated it would 'comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria', although specifics were not provided. The Chinese government criticized the Dutch for 'improper interference' in corporate affairs, attributing the disruption of global production and supply chains to these actions.
Nexperia has informed customers it will cease sending chips back to China for processing, according to correspondence seen by Reuters. The European Automobile Manufacturers' Association (ACEA) had previously warned that Nexperia's chip supplies could be exhausted within weeks unless the Chinese ban was lifted, threatening production continuity for automotive suppliers.
This development in Chinese export policy follows a meeting in South Korea between Donald Trump and Xi Jinping, where discussions regarding chips took place. The White House is expected to release a report on a new trade agreement with China, which will also reportedly include the resumption of Nexperia exports. Historically, the US government placed Wingtech - Nexperia's parent company - on its 'entity list' due to national security concerns, and similar scrutiny has been faced by Nexperia in the UK, where it was required to sell its silicon chip plant in Newport.
In retaliation, China announced it would not re-export completed Nexperia chips to Europe, which raised alarms among car manufacturers, with one association calling the move 'alarming'. Approximately 70% of chips produced in the Netherlands are sent to China for completion before being exported elsewhere.
In a recent statement, China indicated it would 'comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria', although specifics were not provided. The Chinese government criticized the Dutch for 'improper interference' in corporate affairs, attributing the disruption of global production and supply chains to these actions.
Nexperia has informed customers it will cease sending chips back to China for processing, according to correspondence seen by Reuters. The European Automobile Manufacturers' Association (ACEA) had previously warned that Nexperia's chip supplies could be exhausted within weeks unless the Chinese ban was lifted, threatening production continuity for automotive suppliers.
This development in Chinese export policy follows a meeting in South Korea between Donald Trump and Xi Jinping, where discussions regarding chips took place. The White House is expected to release a report on a new trade agreement with China, which will also reportedly include the resumption of Nexperia exports. Historically, the US government placed Wingtech - Nexperia's parent company - on its 'entity list' due to national security concerns, and similar scrutiny has been faced by Nexperia in the UK, where it was required to sell its silicon chip plant in Newport.
