Netherlands eases China tensions as Nexperia chip controls are rolled back

The Netherlands has stepped back from its emergency controls over chipmaker Nexperia, easing tensions with China and calming pressure on global supply chains that were beginning to spill into the automotive industry.

The move follows renewed diplomatic engagement between Chinese, Dutch, German, EU, and US officials, who worked to resolve a standoff that had cast a spotlight on the fragility of semiconductor flows.

Although Nexperia does not make cutting-edge chips, its components power essential functions in vehicles around the world.

Dutch powers withdrawn

The Dutch government withdrew its temporary powers after receiving confirmation that chip deliveries from Nexperia’s facility in China could resume without disruption.

These powers had been activated in late September under a Cold War-era law that allowed the government to block or amend decisions inside companies deemed sensitive to national security.

Economic Affairs Minister Vincent Karremans announced the rollback in a post on X and positioned the step as a show of goodwill following renewed cooperation with Beijing.