BEIJING, China — Beijing has announced a prospective relaxation of a chip export ban originally imposed following the Netherlands’ decision to seize control of Nexperia, a Chinese-owned chipmaker headquartered in the Netherlands.
The Dutch authorities assumed control of Nexperia in September, invoking a Cold War-era law and citing “serious governance shortcomings” to prevent the chips from becoming unavailable in a national emergency.
In a retaliatory measure, China halted the re-export of completed Nexperia chips to Europe, a move that prompted significant alarm within the European automotive sector.
One industry association characterized the action as “alarming.”
A substantial portion—approximately 70% of chips manufactured in the Netherlands—are typically sent to China for final processing before being re-exported globally.
Beijing’s conditional concession
In a statement released on Saturday, China indicated a willingness to ease the export freeze:
“comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria.”
However, Beijing did not specify the criteria or details of what these exemptions might entail.
The Chinese government also sharply criticized The Hague for what it termed “improper interference in the internal affairs of enterprises” and laid the blame on the Netherlands for “the current disruption of global production and supply chains.”
Earlier this week, the Dutch-controlled firm informed its customers it would stop shipping chips back to China for processing, according to a letter viewed by the Reuters news agency.
Automotive industry at risk
The European Automobile Manufacturers’ Association (ACEA) had issued a strong warning last month, estimating that Nexperia chip supplies would only last a matter of weeks unless the Chinese restrictions were lifted.
The industry group stated:
“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.
Beijing’s latest plan to relax export controls comes shortly after a meeting between Donald Trump and Xi Jinping in South Korea earlier this week. Trump later confirmed that the leaders discussed chips, although Beijing’s official post-meeting readout did not explicitly mention any specific area of trade.
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The White House is expected to release a fact sheet today detailing its new trade agreement with China. Reuters reports that this announcement will also include the resumption of Nexperia exports.
Global security context
The security concerns surrounding Nexperia are not isolated.
In the United Kingdom, the firm was previously compelled to sell its silicon chip plant in Newport after UK members of parliament and ministers cited national security concerns.
Nexperia continues to own a separate UK facility located in Stockport.
Furthermore, the US government placed Wingtech, Nexperia’s parent company, on its “entity list” in December 2024, designating it as a national security concern.
