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China will exempt some Nexperia chips from an export ban that was imposed amid an escalating row with the Dutch government, officials said on Saturday.

“We will comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria,” the Chinese Commerce Ministry said in a statement.

Nexperia produces components in Europe, sends them to China for finishing and then re-exports them back to customers in Europe.

The Netherlands-based company is owned by China’s Wingtech Technology. But the Dutch government invoked a Cold War-era law to effectively take control of the semiconductor maker in September, citing security concerns.

This prompted China to announce export controls on the chips in October.

China, EU and US talk export controls

The Wall Street Journal, citing unnamed sources, said the exemption for Nexperia chips came after a meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea.

The Dutch government refused to comment on the reports and said it remained in contact with Chinese authorities “to work toward a constructive solution that restores balance to the chip supply chain and that is good for Nexperia and our economies.”

Meanwhile, Chinese and European Union officials also held talks on export controls more broadly.

“China confirmed that the suspension of the October export controls applies to the EU. Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies,” EU Trade Commissioner Maros Sefcovic said in a post on X.

Why are Nexperia semiconductors important?

Nexperia components are mainly found in cars, with the company supplying 49% of the electronic components used in the European automotive industry, according to German business newspaper Handelsblatt.

Although the components are technically replaceable, establishing alternative supply chains poses a major challenge for European automakers and other Nexperia customers.

“Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages,” European auto lobby ACEA warned last month.

In its statement on Saturday, China’s Commerce Ministry placed blame on “the Dutch government’s improper intervention in the internal affairs of enterprises” for causing “the current chaos in the global supply chain.”

Edited by: Srinivas Mazumdaru