Ripple effect: Following a rare face-to-face meeting between President Trump and Xi Jinping, China has moved to lift export restrictions on Dutch chipmaker Nexperia, marking a partial resolution in the semiconductor dispute that has disrupted automotive production worldwide and complicated trade relations between Beijing, Washington, and Europe. The decision doesn't end the dispute, but it signals that all sides are feeling the pressure of a semiconductor crunch.
The decision, announced on Saturday by China's Commerce Ministry, will permit shipments of Nexperia's mature-node chips "in eligible cases," though criteria were not specified. The ministry said the change reflected China's intent to balance national security with global supply stability. It also criticized the Netherlands for what it called "improper interference in the internal affairs of companies," referring to the Dutch government's earlier seizure of Nexperia's assets.
Nexperia, a subsidiary of China's Wingtech Technology, halted shipments from its Chinese facilities several weeks ago after Dutch authorities took control of the company. The seizure followed the US government's expansion of trade blacklist rules to cover subsidiaries at least 50% owned by sanctioned entities. Dutch officials said their intervention was aimed at preserving technological knowledge critical to Europe's economic security.
Nexperia, which earned roughly $2 billion in revenue last year – about 60% from auto applications – supplies basic components such as diodes and transistors used in hundreds of vehicle systems. Shortages of those chips, processed mainly in China, quickly constrained assembly lines in North America and Europe. Honda, for example, paused production at several of its North American plants last week, citing dwindling availability of essential semiconductors.
The resumption of shipments is one of several trade adjustments flowing from recent negotiations between President Trump and Chinese leader Xi Jinping, their first in-person meeting in six years. The encounter yielded what officials on both sides have described as a temporary truce, pairing a US rollback of certain tariffs with China's pledge to tighten controls on chemicals used to produce fentanyl.
According to a White House fact sheet released on Saturday, Beijing agreed to restore exports from Nexperia's Chinese facilities to "ensure the continued flow of critical legacy chips" to global manufacturers. The document noted that the step forms part of a broader framework intended to stabilize high-tech trade between the two powers.
People familiar with the talks told The Wall Street Journal that the understanding was reached as executives from the auto and electronics sectors pressed for relief from mounting supply pressures.
China's Commerce Ministry confirmed separately that the US will defer for one year a decision on new restrictions against some Chinese subsidiaries. However, it did not detail which entities would benefit. The announcement followed days of uncertainty among automakers and suppliers over whether the White House would formally approve the Nexperia shipments.