The Globe and Mail reports in its Monday edition that China has granted exemptions to export controls on Nexperia chips for civilian use, aiding supply shortages for automakers. A Reuters dispatch to The Globe reports that this move signals Beijing's intention to ease pressure on the global auto industry that has faced challenges since the Dutch government took control of Nexperia, a major manufacturer of automotive chips. Nexperia, based in the Netherlands, is owned by the Chinese company Wingtech. China's commerce ministry announcement came after German and Japanese companies reported that deliveries of Nexperia's Chinese-made chips had resumed. Bilateral ties between China and the Netherlands are expected to remain strained until the dispute over Nexperia's ownership and operations is settled.
The Dutch government took control of Nexperia on Sept. 30, saying that Wingtech was planning to move its European production to China and that this would pose a threat to European economic security.
China responded by cutting off exports, but then said last week that it would begin accepting applications for exemptions after a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on Oct. 30.
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