Alckmin Presses China for Exemption From Chip Export Curbs to Shield Auto Sector

Overview

• Vice President Geraldo Alckmin contacted the Chinese ambassador in Brasília and Brazil’s ambassador in Beijing to open talks on excluding Brazil from the export restrictions.
• Brazil’s industry ministry warned that some automakers could begin production stoppages in two to three weeks if supplies are not restored.
• Nexperia supplies roughly 40% of the specific automotive chips used in Brazil’s flex‑fuel vehicles, and officials say there is no immediate substitute in the supply chain.
• The squeeze stems from a geopolitical dispute after the Dutch government took control of a Nexperia unit, prompting China to restrict exports of key components.
• To avert disruption threatening about 130,000 direct jobs and 1.3 million direct and indirect jobs, the government pledged to prioritize domestic‑only purchases with traceability while negotiations continue.