(qlmbusinessnews.com . Mon 10th Nov, 2025) London, UK —
Nexperia's Chip Exports to Boost Vehicle Production in Europe: China's New Trade Move
China has announced a significant easing of its export controls on computer chips essential for vehicle manufacturing, as confirmed by the nation's Commerce Ministry this past Sunday.
The ministry has specified that export exemptions will be applied to products shipped by the Chinese-owned company, Nexperia, for non-military use. This development is poised to support European car manufacturers who had been apprehensive about potential production disruptions.
Simultaneously, China has put a halt to its export ban to the USA on certain materials vital for semiconductor manufacturing and has agreed to waive port fees for American vessels.
These actions signal a de-escalation of the trade strains that have existed between Beijing and Washington. The situation saw improvement following discussions in October, where Chinese President Xi Jinping and then US President Donald Trump decided on reducing tariffs and suspending certain trade measures for a duration of one year.
The tension initially escalated in October when the Dutch authorities took over Nexperia. Although the company is headquartered in the Netherlands, it is under the ownership of China's Wingtech. This move aimed to protect Europe's semiconductor supply for automobiles and other products.
China's immediate response was to prohibit the export of the company's complete chips, a stance it has softened earlier this month as part of a trade agreement with the United States.
Approximately 70% of Nexperia's European-produced chips are dispatched to China for final processing and subsequent re-export. The Dutch government cited “serious governance shortcomings” as the reason for their intervention with Nexperia, to prevent a scarcity of chips in urgent situations.
The blockage of exports from Nexperia by China had raised concerns about potential global supply chain disruptions.
Warnings about imminent supply shortages had been issued by the European Automobile Manufacturers' Association (EMEA) in October, stressing that chip supplies from Nexperia would last only a few weeks without lifting the Chinese embargo.
Even car manufacturing giants like Volvo Cars, Volkswagen, and Jaguar Land Rover had sounded alarms over the potential need to halt production due to the scarcity of chips.
However, relief came on Saturday when EU Trade Commissioner Maros Sefcovic revealed, via a post on X, that China had consented to simplify export procedures for Nexperia's chips significantly. Moreover, any exporter providing goods for civilian use would be exempt from licensing requirements.
Sefcovic emphasized continuing discussions with both Chinese and Dutch authorities to achieve a secure, stable, and predictable framework that would allow the uninterrupted flow of semiconductors.
In urging the EU to influence the Netherlands towards amending its course of action, China's Commerce Ministry aims for the restoration of standard practices.
Furthermore, the lifting of the export ban on “dual-use” items, including crucial materials like gallium and germanium to the US, took effect on Sunday and is set to continue until 27 November 2026. This decision reverses restrictions placed on the export of goods with potential military applications, initially imposed in December 2024.
Additionally, the suspension of port fees for US-affiliated ships, effective from 0501 GMT Monday, for a year, and the recent announcement to suspend further export controls related to specific rare earth materials and lithium batteries, marks a pivotal step towards mending Sino-American trade relations.
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