Summary
China has decided to ease its export ban on certain computer chips to Europe after the Netherlands took control of a Chinese-owned chipmaker, Nexperia, citing governance issues. This move comes after concerns from European car manufacturers about chip shortages impacting vehicle production. The decision followed discussions between President Trump and Chinese President Xi Jinping.
Key Facts
- China will loosen a ban on exporting chips to Europe that was imposed after the Netherlands took over Nexperia, a chipmaker.
- The Netherlands used an old law to take over Nexperia, citing governance issues and concerns over chip availability in emergencies.
- China initially stopped sending completed Nexperia chips back to Europe, causing worries among European car manufacturers.
- Around 70% of chips made in the Netherlands are sent to China for completion before export to other countries.
- China criticized the Netherlands for interfering in business, blaming it for disrupting global supply chains.
- The European Automobile Manufacturers' Association warned that chip shortages could halt vehicle production.
- Discussions between President Trump and China's Xi Jinping addressed trade and chip exports.
- The White House plans to release details of a new trade agreement with China, including the resumption of Nexperia chip exports.
