China announced it will ease export restrictions on semiconductor products from Dutch-based chipmaker Nexperia, signaling a potential de-escalation in tensions following the Netherlands’ controversial state takeover of the Chinese-owned firm.
In September, Dutch authorities invoked a Cold War-era emergency law to seize control of Nexperia, citing “serious governance shortcomings” and concerns over the security of supply chains in the event of a geopolitical crisis. The move, which effectively nationalized a Chinese-owned enterprise, was seen in Beijing as a political intervention.
In retaliation, China imposed a ban on re-exporting completed Nexperia chips to Europe, sparking alarm among the continent’s car manufacturers. Around 70% of chips produced in the Netherlands are sent to China for completion before being re-exported to other markets — a vital part of Europe’s automotive supply chain.
Beijing’s Ministry of Commerce said on Saturday that it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria,” without specifying what those criteria would be. The statement also accused the Dutch government of “improper interference in the internal affairs of enterprises” and blamed it for “the current disruption of global production and supply chains.”
The move comes amid mounting pressure from European industry groups. The European Automobile Manufacturers’ Association (ACEA) warned last month that supplies of Nexperia chips could run out within weeks unless Beijing lifted its export ban. “Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers, threatening production stoppages,” the association said.
A letter seen by Reuters this week confirmed that Nexperia, now under Dutch control, had informed customers it would stop sending chips to China for processing, further straining supply chains.
The easing of China’s ban follows a meeting earlier this week between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea. Trump told reporters that the leaders had discussed semiconductor trade, though Beijing’s official readout did not mention the topic. Washington is expected to release further details of a new trade understanding with China later on Saturday, which could include the resumption of Nexperia exports.
The controversy over Nexperia has become a flashpoint in Europe’s struggle to balance economic openness with national security. The company’s Chinese parent, Wingtech, was placed on the U.S. government’s “entity list” in December 2024, identifying it as a potential security threat.
In the United Kingdom, Nexperia was also forced to divest its Newport semiconductor plant in 2022 after the government raised similar security concerns, though it continues to operate a facility in Stockport.
