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The Netherlands announced on Wednesday that it is suspending state control of Chinese chipmaker Nexperia after “constructive” talks with Chinese authorities.
The decision marks a de-escalation after several weeks of dispute between the Hague and Beijing over the export of chips that play an essential role in the European automotive sector.
“In light of recent developments, I consider it the right moment to take a constructive step by suspending my order under the Goods Availability Act regarding Nexperia,” Dutch Economy minister Vincent Karremans wrote on X.
The dispute began on 30 September when the Dutch government invoked the Goods Availability Act to take control of Nexperia over fears of technology transfers from the company’s Dutch plant to facilities in China.
Beijing retaliated by restricting exports of the Nexperia’s finished chips from China, triggering shortages in the global automotive industry.
The government said on Wednesday that the resumption of exports now appeared to be assured.
“In the past few days we have had constructive meetings with the Chinese authorities,” Karremans said, adding: “We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world.”
In a letter sent to the Dutch Parliament on Wednesday, Karremans wrote that “Chinese authorities currently appear to be granting permission to companies from European and other countries to export Nexperia chips.”
However, he also added a note of caution.
“A duty to provide information remains in effect: the company must inform me about the transfer of production resources and knowledge between its facilities.”
Supply crisis eases off
The impasse seemed to ease at the end of October following a meeting between the Chinese and the US in South Korea at which both sides agreed to a truce in their bilateral trade dispute.
After a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on October 30, China said it would start accepting applications for exports of Nexperia chips from Chinese facilities to ease what was becoming a global shortage.
However, Karremans told the media last week that he had no regrets about his assertive approach to the chipmaker.
EU trade Commissioner Maroš Šefčovič welcomed the Dutch decision on X saying it was “another key step in stabilising our strategic chip supply chains.”
Last Friday, Šefčovič told Euronews the dispute was a warning that the EU needs to diversify its supply of strategic products since they can now be “weaponised” by third countries.