China’s commerce ministry announced on Sunday that export restrictions on computer chips, which are essential to the manufacture of automobiles, have been eased. It stated that Chinese-owned Nexperia’s exports for civilian use have been exempted, which should benefit automakers who were concerned that production in Europe will be negatively impacted.
Simultaneously, China has suspended port fees for US ships and halted a ban on the transfer of certain semiconductor industry ingredients. Following an agreement in October between US President Donald Trump and Chinese President Xi Jinping to lower tariffs on one another and halt further measures for a year, the actions signify a reduction in trade tensions between Beijing and Washington.
In an effort to protect the European supply of semiconductors for automobiles and other products, the Dutch government seized control of Nexperia in October. Nexperia is situated in the Netherlands but is owned by Wingtech, a Chinese business.
China retaliated by prohibiting the company’s completed chip exports. But as part of a trade agreement between the US and China, it said earlier this month that it will start loosening the prohibition. Although Nexperia is headquartered in the Netherlands, over 70% of its European-made chips are shipped to China for completion and subsequent export to other nations.
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