China Eases Chip Export Ban to Europe After Dutch Dispute Sparks Supply Fears

China has announced that it will ease its restrictions on exporting computer chips to Europe, following a dispute with the Netherlands over the control of Nexperia, a Chinese-owned chipmaker based in the Netherlands. The issue began in September when Dutch authorities took over Nexperia, citing serious problems with how the company was being managed and wanting to ensure that chips would be available in emergencies. In response, China said it would stop sending completed Nexperia chips to Europe, which caused concern among European car manufacturers who rely on these chips for their vehicles. One industry group even called the move 'alarming. '

About 70 percent of chips made in the Netherlands are shipped to China, where they are finished and then exported to other countries. On Saturday, China said it would 'comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria,' but did not explain what those criteria would be. China also criticized the Dutch government for interfering in business matters and blamed them for disrupting global supply chains. Nexperia has reportedly told its customers that it will stop sending chips to China for processing, according to a letter seen by Reuters.

Last month, the European Automobile Manufacturers' Association warned that supplies of Nexperia chips would only last a few weeks unless China lifted its ban. They said that without these chips, European car suppliers would not be able to make the parts needed for vehicle production, which could lead to factories shutting down. The decision to relax export controls comes after a meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea. The White House is expected to release more details about a new trade agreement with China, and Reuters reports that Nexperia exports will resume. In December 2024, the US government added another Chinese chipmaker, Wingtech, to its 'entity list' because of national security concerns. In the UK, Nexperia was forced to sell its chip plant in Newport due to similar worries, but it still owns a facility in Stockport.