China resumes Nexperia chip shipments as supply strains hit automakers

China resumed shipments of Nexperia chips meant for civilian use, as stated by the commerce ministry in Beijing on Sunday, according to Reuters.

The decision came after supply shortages hit automakers and their suppliers, who rely on these basic semiconductors for electrical systems in vehicles.

The ministry said the exemptions are active now, allowing chips packaged in China to be delivered to buyers again. Nexperia is based in the Netherlands, but owned by the Chinese company Wingtech, which has been the center of tension between Beijing and The Hague.

The commerce ministry did not detail what counts as civilian use. However, companies in Germany and Japan have already confirmed that shipments of the Chinese-packaged chips have resumed.

Even with the resumed flow, the dispute over the company’s ownership and production direction remains unsettled.

The Dutch government took control of Nexperia on September 30, claiming Wingtech intended to move European production to China, arguing it was a threat to European economic security.

After that, China halted exports of the finished chips. Permission for exemptions began only after U.S. President Donald Trump and Chinese President Xi Jinping met on October 30 and signaled a willingness to reopen certain trade channels.

China tells the EU to pressure the Netherlands

China’s commerce ministry said it expects the European Union to push the Netherlands to reverse what it called the “seizure” of Nexperia, adding that Beijing wants the EU to “further intensify efforts” and encourage the Netherlands to correct what it described as incorrect actions.

According to Reuters, the ministry also said that China has been working to protect global semiconductor supply chains, while criticizing the Netherlands for creating disruption by not resolving the dispute sooner, so its export halt was a response to the Dutch government’s takeover rather than an act of escalation.

Trade relations between China and Europe have already been fragile. European officials have increasingly voiced concerns that Chinese manufacturing is heavily subsidized, leading to excess output that floods global markets.

Industry in Europe is under pressure from rising competition as well as supply chain dependency, so this Nexperia situation has only amplified those concerns.

European officials discuss possible countersteps

In Frankfurt on Friday, Bundesbank President Joachim Nagel said Europe must consider how to respond if trade relations with China continue to deteriorate. Joachim said the region needs to make clear that its industries will be protected if required.

“Europe has to think about how to retaliate, maybe, when things are escalating further,” he said.

Joachim added that conversation is still necessary to avoid letting disputes grow unchecked, saying, “But my impression here is that first of all it’s important that we talk to each other. I think we should understand better what’s going on.”

The European Union has since shared its concerns about Chinese trade restrictions, especially on materials needed for manufacturing.

Beijing has set controls on exports of rare-earth magnets, which are used in electric vehicle motors and defense equipment, requiring companies to apply for import approvals.

This has increased hurdles for manufacturers already dealing with cost pressure and supply instability.

Joachim will travel to China this month with German Finance Minister Lars Klingbeil. He said the visit is intended to improve communication and reduce strain.

Joachim said the aim is to speak directly and search for ways to ease the stress points that have built up. “To discuss things in a cooperative sense, I guess, is the best that we can do to overcome one or the other stress situation we had in the past,” he said.

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