China has granted exemptions from export controls on Nexperia chips for civilian applications, the Ministry of Commerce said, in a move that will help ease supply shortages for automakers and suppliers in the automotive industry.
The announcement represents the strongest signal yet from Beijing that it will ease pressure on the global auto industry caused by export restrictions imposed after the Dutch government took control of Nexperia, a major maker of core chips used in automotive electrical systems, Reuters reports.
Nexperia is headquartered in the Netherlands, but is owned by the Chinese company Wingtech.
China's Ministry of Commerce did not specify what it meant by civilian use, but the announcement comes after statements from German and Japanese companies that shipments of Nexperia chips made in China had resumed.
However, bilateral relations between China and the Netherlands, and indirectly the European Union, are likely to remain strained until the dispute over Nexperia's ownership and operations is resolved.
The Dutch government took control of Nexperia on September 30, alleging that Wingtech planned to move the company's European production to China and that this would pose a threat to Europe's economic security.
China responded by suspending exports of the company's finished chips, which are mostly packaged in China, although it said last week it would start accepting requests for exemptions after a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on Oct. 30.
China's Ministry of Commerce has repeatedly said it is protecting global chip supply chains, while the Netherlands, they claim, is not taking steps to resolve the dispute.
The ministry statement said that China expects the EU to make "even stronger" efforts to encourage the Dutch side to withdraw its decision to take over Nexperia.
"China welcomes the EU continuing to use its influence to urge the Netherlands to correct its wrongdoings as soon as possible," the ministry added.
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