China has approved exemptions to export controls on Nexperia chips for civilian applications, the commerce ministry said on Sunday, in a move expected to ease semiconductor shortages that have disrupted production for carmakers and automotive suppliers.
The decision marks Beijing’s strongest signal yet that it plans to ease pressure on the global automotive industry, which has been affected by export curbs imposed after the Dutch government took control of Nexperia, a major producer of basic chips used in vehicle electrical systems. Nexperia is based in the Netherlands but owned by China’s Wingtech Technology.
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Although the commerce ministry did not define what constitutes “civilian use,” its announcement followed reports from German and Japanese companies that deliveries of Nexperia’s Chinese-made chips had resumed.
The ministry said in its statement that China hoped the European Union would help encourage dialogue between Beijing and The Hague. “China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the ministry said, adding that it expected Brussels to “further intensify” its efforts.
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Tensions between China and the Netherlands—along with the broader European Union—remain elevated after the Dutch government seized control of Nexperia on September 30, citing concerns that Wingtech was planning to shift European production to China, posing a risk to European economic security.
China responded by cutting off exports of Nexperia’s finished chips, most of which are packaged in China. However, Beijing said last week that it would begin accepting applications for exemptions following a meeting between Chinese President Xi Jinping and U.S. President Donald Trump on October 30.
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Beijing has defended its position, saying that its export policies are intended to safeguard the global semiconductor supply chain while criticizing the Netherlands for failing to resolve the dispute.
The exemptions are expected to provide much-needed relief to automakers, including Volkswagen, which has already confirmed the resumption of chip supplies from Nexperia. Previously, Volkswagen received its first batch of semiconductors from the Chinese-owned chipmaker after a temporary supply disruption triggered by export restrictions, the company’s China chief said, according to German newspaper Handelsblatt.
