The Dutch government has handed back control of Chinese-owned chipmaker Nexperia after“constructive meetings”with Beijing authorities, Economy Minister Vincent Karremans has announced.

The Netherlands invoked a Cold War-era emergency law to seize the Dutch-based firm last month, citing“serious governance shortcomings”and fears that key chip-making capabilities could be shifted out of the EU. The move triggered a furious response from Beijing, which retaliated by restricting Nexperia’s exports from China, roughly half of the company’s output. The curbs rippled through the auto sector, forcing production cuts at several European plants.

In astatementon X on Wednesday, Karremans said he was suspending supervisory control of Nexperia as“a show of goodwill”after productive talks with Beijing, noting that Chinese authorities had taken steps in recent weeks to ensure steady chip supplies to Europe.

”In light of recent developments, I consider it the right moment to take a constructive step by suspending my order under the Goods Availability Act regarding Nexperia,”Karremans stated. He added, however, that talks between The Hague and Beijing will continue.

The Dutch takeover came amid escalating trade tensions between the EU and China. Over the past year, they have clashed over what Brussels says is Beijing’s dumping of key industrial goods – including electric vehicles, batteries, and solar panels – and alleged state-backed overproduction that undercuts European manufacturers. Beijing has rejected the accusations and accused the EU of protectionism.

The dispute has intensified in recent months, with the EU launching a series of trade probes into Chinese-made electric vehicles and green-tech components, prompting warnings from Beijing that such moves would“seriously disrupt”supply chains. China, in turn, expanded export controls on rare earth elements, permanent magnets and other critical materials, a step that could weigh heavily on Europe’s struggling auto and electronics industries.

According to reports citing court documents, Dutch authorities ultimately took control of Nexperia under heavy pressure from the US, which has urged European allies to block Beijing’s access to advanced semiconductor technology.

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