China has agreed to allow the export of chips that are key to making cars. This prevented widespread shutdowns that this branch of industry feared. TASR informs about it based on a CNN report.
The chips are supplied by Netherlands-based Nexperia, which is owned by Chinese firm Wingtech Technology. Nexperia supplies up to 40% of automotive chips for global vehicle manufacturers.
However, the Dutch government, under pressure from the US, took control of Nexperia last month. Washington put the Chinese parent company Wingtech on the black list of companieswhich it considers a threat to national security. In response to the Dutch move, the Chinese government ordered export controls that halted shipments of Nexperia chips for weeks. Automakers in Europe and the US were therefore worried that they would run out of chips, which could raise vehicle prices, similar to the years after the pandemic.
China’s Ministry of Commerce said in a statement that “the Dutch government’s undue interference in the company’s internal affairs has led to the current chaos in the global supply chain.” But after a meeting between US President Donald Trump and Chinese leader Xi Jinping last week, Beijing announced it would allow customers to apply for exemptions from recently imposed export controls to get the chips they need.
“China, as a responsible country, fully considers the safety and stability of domestic and international supply chains. We will comprehensively consider the actual situation of companies and grant exemptions to eligible exports,” the Chinese Ministry of Commerce said on Saturday (November 1).
The European Automobile Manufacturers Association (ACEA) called China’s move good news. Still, he worries that the crisis is not completely over. “Several practical questions remain, such as how the exemption from export controls will be granted,” it is stated in the statement of ACEA. “Until the safe flow of goods resumes, the situation will remain critical,” added the association.
