China is resuming exports of chips critical to making European cars, potentially setting the stage for the end of a row between Beijing and the Netherlands.
The Dutch government last month took control of local Chinese-owned chipmaker Nexperia, citing national security concerns, and Beijing retaliated by restricting exports of chips from Nexperia’s Chinese facility.
That strained Europe’s auto sector, prompting fears of a shortage, but EU-China talks averted the “worst-case scenario,” Brussels said. The resumption of exports could lead the Netherlands to lift controls on Nexperia.
Despite the de-escalation, the saga exposed the limits of Europe’s economic security policies and the fragility of its supply chains, a European Council on Foreign Relations expert said.