China has declared that it will permit the export of critical automotive chips, a move aimed at preventing disruptions in global supply chains that had raised alarm across the car manufacturing industry.
The decision follows concerns from U.S. and European automakers over potential shortages after Beijing temporarily halted shipments from Nexperia, a Netherlands-based semiconductor firm with Chinese-backed ownership.
The company is a key supplier to the global automotive industry, producing nearly 40% of chips in the transistor and diode segment, according to TechInsights.
Tensions escalated when the Dutch government placed Nexperia under state supervision and removed its Chinese chief executive, citing national security concerns. In response, China had restricted exports, prompting warnings of rising car prices and production delays.
Beijing’s latest announcement came shortly after a meeting between Chinese President Xi Jinping and U.S. President Donald Trump, during which both sides discussed trade stabilization measures.
China’s Ministry of Commerce said it would allow companies to apply for exemptions from recent export controls to ensure that essential chips reach global manufacturers.
“As a responsible major country, China fully considers the security and stability of both domestic and international supply chains,” the ministry said in a statement, adding that qualified exports would receive exemptions following comprehensive assessments.
It also criticized what it described as ‘undue interference’ by the Dutch government in Nexperia’s operations, warning that unilateral actions could irreversibly deepen negative consequences for the global semiconductor supply chain.
The European Automobile Manufacturers Association welcomed China’s move as a positive step, while cautioning that uncertainty remains.
“There are still questions about how export-control exemptions will be implemented. Until the safe flow of goods is fully restored, the situation will remain critical,” the association stated.
Analysts say the easing of export restrictions will help stabilize automotive production in the short term, but emphasize that long-term trust and consistent supply flows remain crucial for the sector’s recovery.
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