Dutch government says it’s suspending its order to take control of Chinese-owned chipmaker Nexperia

HONG KONG (AP) — The Dutch government said it’s relinquishing its control over Chinese-owned chipmaker Nexperia following a standoff between China and the Netherlands.

Economics Affairs Minister Vincent Karremans said Wednesday that he was suspending an earlier order to take control of Nexperia under a rarely invoked law.

The dispute between the two countries has threatened the supply of chips critical for the global auto industry, with Nexperia’s parts widely used across major carmakers including those in North America, Japan and South Korea.

The Dutch government added in a statement on Wednesday that the decision came after “constructive meetings” with Chinese authorities in the past few days.

“The Dutch government is positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” the statement said.

“In light of these developments, The Netherlands has considered it the right moment to take a constructive step by suspending the order under the Goods Availability Act,” it added.