China Signals Easing of Chip Export Ban After Dutch Takeover of Nexperia
China has agreed to ease a semiconductor export ban that threatened Europe’s car industry, after weeks of tension with the Netherlands over the takeover of chipmaker Nexperia.
Earlier this year, the Dutch government took control of Nexperia — a Chinese-owned company based in the Netherlands — using emergency national-security powers. Officials said they needed to ensure chip supplies would remain available in a crisis.
Beijing reacted by stopping re-exports of chips made by Nexperia in China. This caused alarm across Europe because about 70% of Dutch-made chips are normally sent to China for final processing before being shipped to customers worldwide.
Auto Industry at Risk
European carmakers warned they only had a few weeks of chip supply left. Without those components, vehicle production could stall. One major industry association called the situation “alarming”.
To avoid further damage, China has now said it will allow exports again under certain conditions. It did not specify what those conditions are, but the decision suggests Beijing wants to calm the situation.
China also criticised the Dutch action, saying it interfered with business operations and disrupted global supply chains.
Diplomacy Behind the Shift
The move comes shortly after U.S. President Donald Trump met Chinese President Xi Jinping in South Korea. Trump said the leaders discussed semiconductor supplies, and Washington is expected to announce a trade update that includes restoring Nexperia shipments.
This easing is seen as a small but important step in lowering tension in the global tech supply chain. However, Nexperia has already begun telling clients it will stop sending chips to China for processing to comply with Dutch rules.
Security Concerns Still Loom
Nexperia has faced growing scrutiny in the West due to its Chinese ownership. The U.S. placed its parent company Wingtech on its national-security watch list last year, and the UK forced Nexperia to sell a major plant over security concerns.
Despite China’s latest move, experts warn that the dispute highlights the fragile nature of global chip production. With governments tightening control over technology, supply chains are likely to remain under pressure.
