The Dutch government announced its readiness to reconsider the temporary control over chipmaker Nexperia. This decision follows Chinese commitments to resume exports of Nexperia chips produced in China, which are essential for the European automotive industry.

The crisis began at the end of September, when The Hague seized control over Nexperia based on security legislation. It is highly unusual for a Western government to take over a Chinese company's facility out of fear of the 'leakage' of essential information technology.

The Chinese parent company Wingtech regarded the intervention by Dutch Minister Karremans as interference, after which Beijing revoked export permits for semiconductors indispensable to European car factories.

The subsequent diplomatic talks proceeded, according to those involved, in a "constructive" manner. Both governments use cautious wording, but insiders speak of a breakthrough. The resumption of deliveries could take place within days and aims to prevent a production halt in the European automotive industry.

The agreement was reached thanks to close cooperation between the Netherlands, Germany, and the European Commission, it is said. Also, changed trade relations between the United States and China contributed, according to insiders, to a climate in which concessions became possible.

China emphasizes that the Netherlands must take "concrete steps" to fully lift the blockade. According to the Chinese Ministry of Commerce, The Hague is still acting too slowly, which could damage the global supply chain. "That is something no country wants to see," the ministry stated.

The Netherlands defends its earlier intervention as temporary and necessary. A spokesman for the Ministry of Economic Affairs said that The Hague "remains in contact with Chinese authorities and international partners" to work on a solution that benefits both Nexperia and the economy.

The Nexperia chips, largely produced in Chinese factories, form the backbone of European car production. The export stop immediately caused shortages among suppliers. With the recent agreements, a "worst-case scenario" for the European industry appears to be averted for now.

Yet trust remains fragile. China wants guarantees that the Netherlands will actually end its supervision once exports have fully resumed.

Export News and Analysis on EU Trade Policies

China and the Netherlands Resolve Conflict Over Nexperia Semiconductor Exports

China and the Netherlands Resolve Conflict Over Nexperia Semiconductor Exports