China’s Ministry of Commerce plans to exempt some Nexperia orders from an export ban after the Netherlands seized control of the Chinese-owned Dutch chipmaker. Beijing aims to stabilize global supply chains by granting exemptions to affected companies. This move follows discussions between Xi Jinping and Donald Trump in South Korea.

A report by The Wall Street Journal states that Nexperia will resume chip exports under an agreement reached during the Xi-Trump meeting. The US will temporarily halt its 50% subsidiary rule, affecting companies on Washington’s trade blacklist, such as Wingtech Technology, the Chinese owner of Nexperia.

In response to Dutch authorities’ takeover, China imposed a one-year export ban on Nexperia China and its subcontractors. This ban complicates efforts to resolve the dispute over Nexperia, a critical semiconductor supplier for various industries. China criticizes the Netherlands for interfering in corporate affairs.

Nexperia’s China production facility in Dongguan has significantly reduced production due to the ban. Japanese car component makers have been warned about potential chip delivery disruptions, impacting companies like Volkswagen. Honda’s plants in the US and Mexico face production halts over the chip shortage.

Nexperia’s China unit openly defied directives from the Dutch head office, indicating intentions to operate independently. This move has caused disruptions in the global supply chain, affecting automotive, industrial, and consumer applications. The situation continues to escalate with potential consequences for various industries.

Read more at Yahoo Finance: China eyes export ban exemption for some Nexperia orders amid chip supply chain turmoil