China to restart chip exports to European carmakers following US-China breakthrough

China is preparing to lift restrictions on the export of semiconductor components used by Europe’s automotive sector, after a new understanding was reached between Washington and Beijing.

The move could ease concerns that European car production would face parts shortages in the coming weeks.

Tensions escalated earlier this year when the Netherlands temporarily took control of Dutch-based chipmaker Nexperia over national security concerns tied to its Chinese ownership. Beijing responded by blocking exports from Nexperia’s facilities in China — a significant blow, as most of the company’s chips are packaged there before being shipped to global clients.

As part of the deal struck between the US and China during high-level talks in Korea, Washington has agreed to delay enforcement of a rule that would restrict exports to companies linked to Wingtech — Nexperia’s Chinese parent — for at least 12 months. In return, China is expected to pause its own export curbs, including the restrictions that have been affecting shipments of chips and rare-earth minerals.

Officials in the Netherlands have publicly stated that they expect chip consignments to start moving to European customers again soon.

German auto suppliers have also indicated they have received confirmation from China that normal supply will resume.

Nexperia welcomed the US suspension of the affiliate rule and noted signals from Beijing that exports would be facilitated, although the company cautioned that full clarity on delivery timelines would only emerge as shipments resume.