China chip export ban eased after Dutch Nexperia row

China relaxes its chip export ban to Europe following a dispute with the Netherlands over Nexperia. The move aims to stabilize the global chip supply chain.

Beijing Softens Restrictions After Industry Pressure

China has announced that it will ease its chip export ban to Europe, following growing tension with the Netherlands over the government’s takeover of Nexperia, a Chinese-owned semiconductor firm. The decision comes after strong pressure from European automakers who warned of potential production halts due to chip shortages.

In September, the Dutch government invoked a Cold War-era law to take control of Nexperia, citing “serious governance shortcomings” and concerns over national security. In response, China restricted re-exports of completed chips from Nexperia to Europe, causing alarm across the automotive industry.

Europe’s Supply Chain Disruption

Around 70% of chips produced in the Netherlands are sent to China for final processing before being shipped globally. When China halted these exports, it disrupted the delicate balance of the semiconductor supply chain — particularly affecting European car manufacturers.

The European Automobile Manufacturers’ Association (ACEA) warned that without the resumption of Nexperia chip exports, vehicle production could face major delays or even shutdowns.

Beijing’s Statement and Global Reactions

China’s Commerce Ministry said it would “comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria.” However, it did not clearly define what those exemptions would include.

Beijing also criticized the Dutch government for “improper interference in business operations,” holding it responsible for recent disruptions in global supply chains.

The Nexperia management has confirmed it will temporarily stop sending chips to China for processing. Meanwhile, global leaders, including U.S. President Donald Trump and Chinese President Xi Jinping, recently discussed semiconductor trade issues during a meeting in South Korea.

Global Semiconductor Politics

This move comes amid broader geopolitical tensions over semiconductor technology. In late 2024, the U.S. government placed Wingtech—Nexperia’s parent company—on its national security “entity list.” Similarly, the UK forced Nexperia to sell its Newport chip plant over security concerns, though the firm still operates another facility in Stockport.

By loosening its export ban, Beijing appears to be signaling a willingness to stabilize trade relations and prevent further disruption to the global chip market.