"The latest reports from China are positive initial signs of an easing of tensions," an economy ministry spokesman told AFP, while stressing that "a final assessment" of the implications of Beijing's announcement was not yet possible.

The Netherlands in late September invoked a Cold War-era law to effectively take control of Nexperia, whose parent company Wingtech is backed by the Chinese government.

China, in response, banned any re-exports of Nexperia chips to Europe and accused the United States of meddling in Dutch legal procedures to remove Nexperia's Chinese CEO.

In a statement Saturday, a Chinese commerce ministry spokesperson said that it would "grant exemptions to exports that meet the criteria," without offering specifics.

Nexperia's chips are crucial for onboard electronics in cars, and Germany's flagship auto industry stood to be hit hard if shortages continued.

Volkswagen, Europe's biggest carmaker, had warned of looming production stoppages while major German auto suppliers said they were preparing to slash their employees' working hours.

The German economy ministry spokesman said that the government continued to monitor developments closely.

"We take the situation of the affected companies very seriously and are discussing the matter with the companies and with our Dutch and European partners in various formats", he added.

sr/rmb

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