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Beijing has said it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia – a Chinese-owned chipmaker based in the Netherlands.<\/p>\n
In September, the Netherlands used a Cold War-era law<\/a> to take over the company and prevent the chips from becoming unavailable in an emergency, citing “serious governance shortcomings”.<\/p>\n China said in response that it would not re-export completed Nexperia chips to Europe, raising concern among carmakers. One association had described the move as “alarming”. <\/p>\n Around 70% of chips made in the Netherlands are sent to China to be completed and re-exported to other countries. <\/p>\n<\/div>\n China said in a statement on Saturday that it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria”. However, it has not specified what that could entail. <\/p>\n It also went on to criticise the Hague for what it called “improper interference in the internal affairs of enterprises” and blamed it for “the current disruption of global production and supply chains”.<\/p>\n The Dutch-controlled firm told customers it would stop sending chips back to China to be processed, according to a letter this week seen by the Reuters news agency.<\/p>\n Last month, the European Automobile Manufacturers’ Association (ACEA) had warned Nexperia chip supplies would only last a few weeks unless the Chinese ban was lifted.<\/p>\n “Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages,” the group said.<\/p>\n The latest plans by Beijing to relax its export controls have emerged after US President Donald Trump and Chinese counterpart Xi Jinping met in South Korea earlier this week.<\/p>\n