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China Moves to Allow Exemptions From Nexperia Chip Export Ban

Beijing signals relief to stabilize supplies for European carmakers.

Overview

  • China’s commerce ministry said it will grant case-by-case exemptions for some Nexperia chip exports and invited affected firms to submit requests.
  • The announcement followed Xi Jinping’s meeting with President Donald Trump in Busan, with the Wall Street Journal reporting a framework for limited shipments to restart.
  • Following those talks, the ministry said Washington would temporarily halt implementation of its “50% subsidiary” export rule, according to South China Morning Post.
  • Beijing had earlier blocked re-exports of Nexperia products to Europe after the Netherlands seized control of the Chinese-owned Dutch chipmaker and tensions escalated over its governance.
  • European carmakers and suppliers warned of potential factory stoppages given Nexperia’s large share of basic auto chips, even though alternatives exist and require time for approval.