China Resumes Nexperia Chip Export, Urges EU to Make Progress

(Bloomberg) — China on Sunday confirmed that it has taken steps to exempt compliant exports of Nexperia chips intended for civilian use, while urging the European side to make progress in resolving the clash that threatens to disrupt global auto production.

“China has taken practical measures to exempt compliant exports for civilian use,” a Ministry of Commerce spokesperson said in a statement on Sunday, responding to EU trade chief Maros Sefcovic’s post on X indicating China has agreed to resume chip shipments to Europe. “We welcome the European side to continue exerting its influence and urge the Dutch side to correct its erroneous practices as soon as possible.”

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A resumption of exports could set the stage for the Netherlands to lift government controls imposed on Dutch-based Nexperia, which is owned by Zhejiang-based communications equipment manufacturer Wingtech Technology Co. China had retaliated by restricting exports over components from Nexperia’s Chinese facility, which accounted for about half of its pre-crisis volumes.

Pressure has been mounting on the Netherlands to resolve the crisis, as automakers such as Volkswagen AG warned the impact of a global chip shortage. Honda Motor Co. recently slashed its annual profit forecast after halting production at several plants.

The latest development follows recent consultations between Dutch and Chinese officials, with Beijing agreeing to host talks in China. In a statement on Saturday, China’s Ministry of Commerce urged the Netherlands to take concrete steps to protect the rights of Chinese firms.

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