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China Eases Nexperia Export Ban and Suspends Rare‑Earth Curbs as U.S. Delays Sweeping Chip Rule

The moves offer European manufacturers temporary relief from shortages tied to the Dutch takeover of Nexperia.

Overview

  • Following talks in Seoul, the U.S. announced a 12‑month suspension of the BIS “50% rule,” a measure that would have extended export restrictions from roughly 1,400 to more than 20,000 entities.
  • China confirmed its suspension of October rare‑earth export controls applies to the European Union and agreed with Brussels to facilitate licensing and maintain supply‑chain stability.
  • Beijing’s commerce ministry said it will evaluate and grant case‑by‑case exemptions for some Nexperia chip shipments, inviting affected firms to seek approvals.
  • On October 13 the Netherlands used an emergency law to assume control of Nexperia and remove its Chinese board, after which China blocked re‑exports from Dongguan, straining automaker supplies.
  • European carmakers warned of imminent stoppages, and Honda halted production at its Celaya plant due to Nexperia chip shortages, with officials cautioning that the current reprieve is temporary.