China to ease ban on chip exports to Europe after Dutch row

Beijing said it would ease a ban on chip exports it imposed after Dutch authorities took over Nexperia, a Chinese-owned chipmaker based in the Netherlands.

In September, the Netherlands used a Cold War-era law to take over the company after citing “serious management deficiencies” and prevent the chips from becoming unavailable in an emergency.

In response, China said it would not re-export finished Nexperia chips to Europe, causing concern among automakers. One association described the move as “alarming”.

About 70% of the chips produced in the Netherlands are sent to China to be finished and re-exported to other countries.

In a statement on Saturday, China said it would “thoroughly review the actual situation of enterprises and grant exemptions to exports that meet the criteria.” However, it is not specified what this may lead to.

He also criticized The Hague for what he called “unlawful interference in the internal affairs of businesses” and blamed it for the “ongoing disruption of global production and supply chains”.

The Dutch-controlled firm has told customers it will stop sending chips back to China for processing, according to a letter seen this week by Reuters.

Last month, the European Automobile Manufacturers Association (ACEA) warned that supplies of Nexperia chips would last only a few weeks unless the Chinese ban was lifted.

“Without these chips, European automotive suppliers cannot produce the parts and components needed to supply vehicle manufacturers and this therefore threatens to halt production,” the group said.

Beijing’s latest plans to ease export controls come after Donald Trump and Xi Jinping met in South Korea earlier this week.

Trump later told the leaders discussed chipswhile Beijing’s post-meeting report did not specifically mention either area of ​​trade.

The White House is expected to release a fact sheet detailing the new trade deal with China later today. Reuters reports that it will also announce the resumption of Nexperia exports.

In December 2024, the US government placed Wingtech on its so-called “entity list”, identifying the company as a national security concern.

In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers raised national security concerns. It currently owns a British facility in Stockport.