The Chinese Commerce Ministry said on Sunday, November 9, that China eased Nexperia chips export controls for civilian use. Further, it said that this move will help in relieving the supply chain shortages for carmakers and automotive suppliers. Now, this significant announcement turned into an indication from Beijing that it will remove pressure on the global auto industry prompted by export controls that were imposed following the Dutch government took over of Nexperia.
Why are Nexperia Chip export controls in the spotlight?
Nexperia is a large manufacturer of chips used in automotive electrical systems. It is based in the Netherlands but owned by the Chinese company Wingtech. The Ministry’s announcement follows statements from German and Japanese companies asserting that Nexperia’s Chinese-made chip deliveries have resumed. Undoubtedly, the Bilateral ties between China and the Netherlands are likely to stay strained until the conflict related to Nexperia’s Ownership and operations is resolved. China’s Commerce Ministry has repeatedly said it was safeguarding the global chip supply chains, whereas the Netherlands was failing to take action to resolve the conflict. Furthermore, the ministry’s statement on Sunday said that China hoped the EU would further intensify its efforts to urge the Dutch side to revoke the seizure of Nexperia. Apparently, on September 30, the Dutch government took control of Nexperia by citing that Wingtech was planning to displace the company’s European production to China, and this could threaten the European economic security.