The weeks-long diplomatic dispute around the company has raised fears of stoppages among European automakers, which rely heavily on Nexperia components.

"China welcomes the Dutch side's initiative to suspend the administrative order, considering it the first step in the right direction towards properly resolving the issue," a commerce ministry spokesperson said in a statement.

"However, there is still a gap in addressing the root cause of the turbulence and chaos in the global semiconductor supply chain," they added, after two days of bilateral talks in Beijing.

China's commerce ministry said "revoking the administrative order" which effectively allowed the Dutch government to take control of Nexperia was necessary.

The takeover has been suspended rather than cancelled by Dutch Economy Minister Vincent Karremans, who can reinstate it later.

An Amsterdam corporate court last month ordered the suspension of Nexperia's chief executive Zhang Xuezheng, citing poor leadership and poor preparation for incoming US trade restrictions.