China has announced exemptions to its export controls on Nexperia chips intended for civilian use, the commerce ministry said on Sunday, a move aimed at easing supply shortages affecting carmakers and automotive suppliers.

The decision marks Beijing’s clearest indication yet that it plans to reduce pressure on the global automotive sector caused by export restrictions introduced after the Dutch government assumed control of Nexperia, a major producer of basic semiconductors used in vehicle electrical systems.

Nexperia, headquartered in the Netherlands but owned by China’s Wingtech, is central to the dispute. While China’s commerce ministry did not define what constitutes “civilian use,” the announcement follows reports from German and Japanese firms confirming that deliveries of Chinese-made Nexperia chips have resumed.

Despite this easing, relations between China and the Netherlands — and by extension the European Union — are expected to remain tense until the question of Nexperia’s ownership and operations is resolved. The Dutch government took control of the company on 30 September, citing security concerns over Wingtech’s alleged plans to relocate European production to China.

In response, Beijing halted exports of the company’s finished chips, most of which are packaged in China, but later said it would begin accepting exemption applications following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on 30 October.

China’s commerce ministry has maintained that its actions are intended to safeguard global chip supply chains, accusing the Netherlands of failing to address the issue. In its latest statement, the ministry expressed hope that the EU would “step up efforts” to persuade the Dutch authorities to reverse their decision, urging Brussels to “use its influence” to prompt the Netherlands to “rectify its erroneous actions.”

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