In a significant development, China has decided to exempt Nexperia chips from an export ban that was previously imposed due to escalating tensions with the Dutch government. The Dutch government had invoked a Cold War-era law to take control of Nexperia, a semiconductor maker that plays a crucial role in the European automotive industry by supplying 49% of its electronic components. The exemption was announced by China's Commerce Ministry, which cited the need to consider the actual situation of enterprises. This decision follows diplomatic discussions between US President Donald Trump and Chinese President Xi Jinping, indicating the geopolitical implications of semiconductor supply chains. The Dutch government has expressed its commitment to working with Chinese authorities to restore balance in the chip supply chain, which is essential for European automakers facing production challenges due to a global chip shortage.