FX.co ★ China Grants Exemptions to Export Curbs on Nexperia Chips for Civilian Use

China's Ministry of Commerce announced on Sunday that it has granted exemptions to export controls for Nexperia chips intended for civilian use. This development, as reported by Reuters, is expected to alleviate supply shortages faced by car manufacturers and automotive suppliers. The announcement serves as the clearest indication from Beijing yet that it intends to alleviate the global auto industry's challenges brought on by export restrictions. These restrictions were implemented after the Dutch government assumed control of Nexperia, a prominent producer of essential chips for vehicle electrical systems. Although Nexperia is based in the Netherlands, it is owned by the Chinese company Wingtech. The company finds itself at the heart of an ongoing technology conflict between Beijing and Western nations. While China's commerce ministry did not clarify what constitutes civilian use, the announcement follows recent statements from German and Japanese firms, confirming the resumption of shipments of Nexperia’s China-manufactured chips.