The Dutch government has suspended its intervention at computer chip maker Nexperia, returning full control to its Chinese owner in a move that de-escalates tensions with Beijing.
This development is expected to end a prolonged dispute between the Netherlands and China, potentially paving the way for the resumption of chip exports to global car makers.
In an official statement on Wednesday, Dutch Economic Affairs Minister Vincent Karremans said the government has had constructive meetings with the Chinese authorities in the past few days, adding that they are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world, which it described as "a show of goodwill".
The Netherlands will continue to engage in constructive dialogue with China in the period ahead, Vincent Karremans said.
The Dutch state took control of Nexperia on September 30, saying the move was needed to prevent the company's former chief executive from moving its operations to China.
Beijing responded by halting exports of Nexperia's finished products on October 4, a measure it has since relaxed.
Nexperia is a major supplier of basic computer chips to the car industry, and shortages of its chips following the dispute between the Netherlands and China have threatened automotive supply chains and led to production slowdowns and halts.
Previously, the Netherlands said a Dutch government delegation would travel to China to seek a solution in the spat over Nexperia this week.
"A senior official delegation from my ministry will travel to Beijing to continue our efforts to find a mutually agreeable solution," Vincent Karremans said in a statement.
Staff reporter and Reuters
