Chip export thaw: China exempts some Nexperia products from ban; signals easing with Europe
China on Saturday said it will exempt certain Nexperia semiconductor products from an export ban imposed amid a dispute with Dutch authorities, signalling a partial easing of tensions that had alarmed European businesses.Anxiety over potential chip shortages had mounted after the Netherlands invoked a Cold War-era law in late September to take control of Nexperia, whose parent company Wingtech is backed by the Chinese government, AFP reported. Beijing responded by banning any re-exports of Nexperia chips to Europe and accused the United States of interfering in Dutch legal procedures to oust the Chinese CEO of the firm.China’s commerce ministry said in a statement that it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria,” though it did not specify which chips would be covered.The Wall Street Journal reported that the partial resumption of Nexperia shipments formed part of a trade deal agreed between Chinese President Xi Jinping and US President Donald Trump after talks in South Korea on Thursday.The announcement came as Chinese and European Union officials held talks in Brussels on Friday to discuss export controls and supply chain issues. EU spokesman Olof Gill said the discussions provided “a welcome opportunity for both sides to update on the introduction and implementation of export controls,” including China’s restrictions on rare earth elements.Berlin welcomed Beijing’s move as a “positive sign”. “The latest reports from China are positive initial signs of an easing of tensions,” a spokesman for Germany’s economy ministry told AFP, while adding that “a final assessment” of the decision’s implications was still pending.Nexperia produces components such as diodes, transistors, and voltage regulators that are widely used in the automotive and electronics industries. The company manufactures most of its products in Europe, sends them to China for finishing, and re-exports them to European clients.European carmakers and parts suppliers had warned that prolonged restrictions on Nexperia components could disrupt production lines. According to German financial daily Handelsblatt, Nexperia supplies 49 per cent of the electronic components used in the European automotive industry.While French parts maker OPmobility said the chips were “easily substitutable”, it added that obtaining approvals for alternative components from automakers would take time.Beijing suggested that companies facing difficulties could contact the commerce ministry or local authorities for assistance as some shipments resume under the exemption framework.
