China: China has lifted export restrictions on computer chips critical to the global automotive industry, the Ministry of Commerce announced, signalling a fresh thaw in trade relations with the United States and Europe.
The move grants exemptions for exports of Chinese-owned Nexperia products for civilian use, easing concerns among European carmakers that production could soon be disrupted. The decision follows weeks of uncertainty after China blocked exports from Nexperia in response to the Dutch government’s takeover of the company in October.
Nexperia, headquartered in the Netherlands but owned by China’s Wingtech, produces chips vital to vehicle manufacturing and other industries. Roughly 70 percent of its European-made chips are sent to China for completion and re-export.
The Dutch government said it seized control of the company due to serious governance shortcomings and to safeguard semiconductor supplies for Europe. However, China’s subsequent export restrictions prompted fears of a global chip shortage, with automakers such as Volvo Cars, Volkswagen, and Jaguar Land Rover warning of possible production halts.
Relief came this weekend when EU Trade Commissioner Maros Sefcovic confirmed that China had agreed to simplify export procedures and exempt Nexperia shipments for civilian use from licensing requirements. Sefcovic posted on X, stating that, “Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting, stable, and predictable framework that ensures the full restoration of semiconductor flows.”
China’s Commerce Ministry urged the European Union to continue exerting its influence to urge the Netherlands to correct its erroneous practices as soon as possible.
In a parallel development, China also paused an export ban to the US on key semiconductor materials, including gallium, germanium, antimony, and super-hard compounds, until November 27, 2026. These materials are essential for chipmaking and have both civilian and military applications.
The easing of restrictions comes after Presidents Xi Jinping and Donald Trump agreed in October to reduce tariffs and pause other trade measures for one year, marking a step toward stabilising relations between the world’s two largest economies.
China further relaxed controls on the export of certain rare earth materials and lithium batteries, reinforcing signals of a broader move to stabilise global supply chains and de-escalate trade tensions.
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