The dispute erupted in September when the Dutch government effectively took control of Nexperia, which is based in the Netherlands but whose parent company is China's Wingtech.

China responded by banning re-exports of the firm's chips, triggering warnings from automakers of production stoppages as the components are critical to onboard electronics.

But Beijing announced at the weekend it would exempt some chips from the export ban, reportedly part of a trade deal agreed by President Xi Jinping and his US counterpart Donald Trump.

EU trade commissioner Maros Sefcovic posted on X that he welcomed "the confirmation provided today... regarding the further simplification of export procedures for Nexperia chips destined for EU and global clients".

The exports will be allowed as long as the chips are only for "civilian use", Sefcovic added, saying the measure would take effect "immediately".

Talks are continuing with China on finding a "lasting, stable, predictable framework that ensure the full restoration of semiconductor flows", he added.

Germany's Aumovio, a major automotive supplier, had already said Friday it had received permission from Chinese authorities to resume the Nexperia chip exports.

The chips are made in Europe but then sent to China for finishing, before being re-exported to clients in Europe and other markets.

Volkswagen, Europe's biggest carmaker, had warned of production stoppages if the crisis dragged on, while smaller firms were reported to be preparing to cut working hours.

The Netherlands cited national security concerns when it moved to take control of Nexperia, accusing the firm's CEO of mismanagement.

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Aumovio

Volkswagen