🇨🇳 Beijing signals partial retreat on chip export ban amid EU supply pressure

China has announced it will consider exemptions to its chip export ban targeting Europe, following a dispute with the Netherlands over the government’s takeover of Chinese-owned chipmaker Nexperia. The move comes after mounting pressure from European automakers warning of imminent production halts due to disrupted chip supplies.

The row began when Dutch authorities cited “serious governance shortcomings” at Nexperia and invoked emergency powers to intervene. In retaliation, Beijing halted re-exports of Nexperia chips processed in China. Roughly 70% of chips made by Nexperia in Europe are finalized in Chinese facilities before returning to Europe, making the ban a direct blow to supply chains.

Now, after diplomatic talks and a shift in tone following U.S.-China trade discussions, Beijing has agreed to assess exemptions for firms that “meet the criteria,” though it provided no specifics. While the move aims to stabilize supply chains, it also underscores Beijing’s strategic use of critical technologies amid growing global scrutiny of Chinese corporate influence in Europe’s semiconductor sector.