Xi-Trump deal leads to resumed shipments of crucial auto semiconductors

China will loosen its export restrictions on semiconductors made by Nexperia, its Commerce Ministry said, after the Chinese-owned, Netherlands-based automotive chip maker was caught in the crossfire of the U.S.-China trade war, leading to supply disruptions that hit car production.

- Yoko Kubota & Ryan Felton

China will allow exports of Nexperia chips for eligible cases, the Commerce Ministry said Saturday, without specifying the criteria. “As a responsible major power, China fully considers the safety and stability of domestic and international production and supply chains,” it said in a statement. It also blamed the Dutch government's “improper interference in internal affairs of companies” for the supply disruption.

Nexperia, embroiled in a trade and geopolitical dispute between Washington and Beijing, stopped shipping chips from China, where it processes most of its products, several weeks ago after the Dutch seized control of the company.

Nexperia was the latest case in which China showed how it can impose pain on global industries by flexing its export-control muscle. Both with rare earths and Nexperia, the global auto industry has been particularly vulnerable, grappling with Beijing’s moves to constrain supplies of needed magnets and chips. China is a dominant producer of mature technology semiconductors widely used in vehicles.