China has lifted restrictions on certain semiconductor exports, allowing Dutch-based chipmaker Nexperia to resume deliveries to European carmakers. The move, announced by China’s Ministry of Commerce on Sunday, signals a step toward easing tensions with the Netherlands and stabilising strained global supply chains.
A spokesperson for the ministry said Beijing had taken “practical measures to exempt compliant exports for civilian purposes,” in reference to the chips previously caught in export restrictions. The decision follows an agreement reached with the European Commission to restart semiconductor trade, which had been disrupted during the so-called “Nexperia crisis.”
European Commission trade chief Maroš Šefčovič confirmed on Saturday that discussions between the EU and China had produced an understanding to reopen supply channels. The Chinese spokesperson added that Beijing “welcomes continued influence from the European side” while urging the Dutch government to “correct its wrong practices as soon as possible.”
The announcement sparked immediate market reaction in Shanghai, where Wingtech Technology — Nexperia’s Chinese parent company — saw its stock close 3.02% higher on Monday after an intraday peak of 6%. The rally extended gains from Friday, when Wingtech shares had surged nearly 10%. Analysts said the boost reflects investor optimism over renewed trade flows and reduced political risk.
The dispute over Nexperia began earlier this year when The Hague moved to restrict the company’s operations under the rarely used Goods Availability Act. Dutch authorities cited national security concerns, warning that Nexperia’s governance and potential transfer of chipmaking expertise abroad posed risks to European semiconductor supply. A court later suspended the firm’s chief executive.
In retaliation, Beijing froze semiconductor exports, heightening fears across Europe’s auto industry. Nexperia produces key components such as switches and logic chips used in airbags, window controls and power systems — parts essential to car manufacturing. Automakers, including Volkswagen, warned of potential factory shutdowns due to the shortage of Nexperia’s legacy chips, which have limited alternatives.
With China’s partial lifting of the ban, production lines are expected to stabilise. Volkswagen’s China head confirmed to Handelsblatt that the company had received new chip shipments, easing immediate supply concerns.
Beijing also paused other trade restrictions, including bans on critical materials such as gallium, germanium and antimony used in advanced electronics. It suspended special port fees on US-linked vessels as part of a one-year truce in its broader trade standoff, providing further relief for global manufacturers and shipping firms.
The reopening of semiconductor flows between China and Europe marks a significant thaw in a months-long standoff that had rippled through the global auto sector. Analysts say the latest developments suggest both sides are seeking to prevent economic damage while maintaining dialogue over sensitive technology trade controls.
