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China eases export controls on auto chips

Beijing allows Nexperia chip exports for civilian use, easing pressure on global carmakers

China’s Ministry of Commerce has announced that it is granting exemptions to its export controls on specific chips manufactured by Nexperia for civilian use. This is aimed at alleviating acute shortages in the automotive sector.

Nexperia, headquartered in the Netherlands but owned by Chinese company Wingtech, makes large volumes of simple but essential semiconductors used in vehicle electrical systems. The crisis began after the Dutch government took control of Nexperia on 30 September, citing economic‑security concerns that Wingtech would relocate production to mainland China. In response, China imposed export bans on finished chips made in China for foreign markets, triggering fears of shutdowns at car plants in Europe and Japan.

Beijing’s statement however does not specify exactly which chip types or uses qualify as “civilian use,” leaving some ambiguity for automakers and suppliers. According to industry reports, some German and Japanese companies say they have already received resumed deliveries of Nexperia chips from China under the new exemptions.

Despite the relief for automotive supply chains, the broader dispute between China, the Netherlands and the European Union over Nexperia’s ownership and operations remains unresolved. The Commerce Ministry has urged the EU to press the Netherlands to reverse its takeover of Nexperia.

Automakers and suppliers will now monitor how quickly and fully chip flows resume, and whether the exemption marks a stable shift or a temporary reprieve in what has become a high‑stakes tech and trade battleground.

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