China poised to lift ban on chips exports to European carmakers after US deal

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1. News snippet: The vital flow of chips from China to the car industry in Europe looks poised to resume as part of the deal struck last week between Donald Trump and his Chinese counterpart, Xi Jinping.

   The Netherlands has signalled that its standoff with Beijing is close to a resolution amid signs China’s ban on exports of the key car industry components is easing.

   The dispute began when the Dutch government took control of the chipmaker Nexperia at the end of September after the US raised security concerns about the company’s Chinese owner, Wingtech. Beijing retaliated by halting all exports from Nexperia’s factories in the country, threatening to disrupt car production in Europe and Japan.

   The White House had put Wingtech on a list of companies that would have their exports to the US controlled under its “affiliate rule”. However, as part of the deal between Trump and Xi in South Korea, the US authorities will now delay the implementation of this rule for a year in exchange for China pausing its own restrictions on exports of chips and crucial rare-earth minerals.

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