Sat, 01 Nov 2025
EU-China chip disputes alarmed carmakers amid concerns it could halt global car productions
* Beijing will loosen its chip export ban imposed after Dutch authorities took control of Nexperia, a Chinese-owned chipmaker.
* The move comes after concerns were raised by car manufacturers such as Volvo and Volkswagen that the ban could lead to temporary shutdowns at their plants.
* Around 70% of Nexperia chips made in Europe are sent to China for completion before being re-exported to other countries.
* Beijing will consider exempting individual firms from the ban, but has not specified what criteria will be used to determine exemptions.
* The move follows a meeting between US President Donald Trump and Chinese counterpart Xi Jinping, during which they discussed trade issues including chips.
* Nexperia had announced plans to stop sending chips to China for processing in response to the ban, and was developing alternative solutions to ensure supply continuity.
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