China has lifted export controls on computer chips vital to automobile production, the country’s Ministry of Commerce said on Sunday.
Exemptions have been granted for exports made by Chinese-owned Nexperia for civilian use, he said, which should help automakers who feared production in Europe would be affected.
At the same time, China also lifted a ban on exporting some materials that are crucial in the semiconductor industry to the United States and suspended port fees for American ships.
The measures mark an easing of trade tensions between Beijing and Washington after President Xi Jinping and his US counterpart Donald Trump agreed in October to reduce mutual tariffs and suspend other measures for a year.
In October, the Dutch government took control of Nexperia, based in the Netherlands but owned by Chinese company Wingtech, to try to safeguard Europe’s supply of semiconductors for cars and other goods.
In response, China blocked exports of the company’s finished chips. However, it said earlier this month that it would begin easing the ban as part of a trade deal reached between the United States and China.
While Nexperia is based in the Netherlands, around 70% of its chips made in Europe are sent to China to be completed and re-exported to other countries.
When it took control of the company, the Dutch government said it had made the decision due to “serious governance deficiencies” and to prevent the company’s chips from becoming unavailable in an emergency.
But when China blocked Nexperia chip exports, there were concerns it could create problems in the global supply chain.
In October, the European Automobile Manufacturers Association (EMEA) warned that supplies of Nexperia chips would only last a few weeks unless the Chinese ban was lifted.
Earlier this month, EMEA CEO Sigrid De Vries told the BBC that “supply shortages were imminent.”
Volvo Cars and Volkswagen had warned that chip shortages could lead to temporary closures at their plants, and Jaguar Land Rover also said the chip shortage posed a threat to its business.
But on Saturday, EU Trade Commissioner Maros Sefcovic announced in a post on
“Close engagement with the Chinese and Dutch authorities continues as we work towards a durable, stable and predictable framework that ensures the full restoration of semiconductor flows.”
In its statement, China’s Ministry of Commerce called on “the EU to continue to exert its influence to urge the Netherlands to correct its wrong practices as soon as possible.”
Meanwhile, the suspension of the ban on exports of “dual-use items” related to gallium, germanium, antimony and superhard materials to the United States came into effect on Sunday and will be in effect until November 27, 2026.
In December 2024, the ban on exports of goods and materials that may have both civil and military uses was announced.
China’s Ministry of Transport also said port fees charged to ships linked to the United States would be suspended for one year, starting at 0501 GMT on Monday.
On Friday, China also announced the suspension of other export controls related to expanded restrictions on some rare earth materials and lithium batteries.
