Beijing: China has lifted export controls on some computer chips used by carmakers and suspended bans on certain critical materials, in a move that signals an easing of trade tensions with the United States and Europe.
The Chinese Ministry of Commerce announced that chips produced by Nexperia, a Chinese-owned semiconductor company based in the Netherlands, will be exempted from export restrictions if they are used for civilian purposes. The decision comes after months of concern among European automakers who feared production shutdowns due to a shortage of Nexperia chips.
Major car manufacturers, including Volkswagen, Volvo, and Jaguar Land Rover, had warned that limited chip supplies could disrupt their operations. The European Automobile Manufacturers’ Association had earlier cautioned that chip inventories might run out within weeks unless China relaxed its export ban.
The export restrictions were introduced after the Dutch government took temporary control of Nexperia in October to secure local semiconductor production and prevent national security risks. In response, China had blocked exports of the company’s chips, worsening the global shortage of semiconductors vital for the automobile industry.
The easing of controls follows an agreement reached last month between Chinese President Xi Jinping and US President Donald Trump to reduce tariffs and suspend other trade measures for a year. European officials, including EU trade commissioner Maros Sefcovic, welcomed China’s move and confirmed that export procedures for Nexperia chips have been simplified.
Alongside the chip exemption, China has also suspended a ban on exporting key materials such as gallium, germanium, and antimony to the United States. These elements are widely used in the semiconductor and electronics industries. The suspension, effective immediately, will remain in place until late 2026.
Beijing said the decision aims to stabilize supply chains and ensure the flow of critical goods while maintaining export licensing for items with potential military applications.
Analysts view the announcement as a positive sign of improving relations between Beijing, Washington, and Brussels after months of tension over technology and trade policies. However, they also warn that the relaxation could be temporary and may be adjusted depending on future political and economic developments.
European officials are monitoring the situation closely to ensure that the full restoration of semiconductor and material supplies continues smoothly in the coming months.