China eases chip export ban

With this move, it can be said that the global auto industry has "breathed a sigh of relief" because the risk of mass factory closures worldwide that the industry once feared has been prevented.

The issue stems from Nexperia, a Chinese-owned but Netherlands-based chipmaker that is a crucial supplier of 40% of the automotive chip market in the transistor and diode segment. A few weeks ago, after the Dutch government took control of Nexperia and fired its Chinese CEO, China responded by imposing export controls. The move immediately caused a wave of alarm in the auto industry in both the US and Europe, raising fears of a new chip shortage crisis that could push up car prices like those that happened after the Covid-19 pandemic.

"Because of the overall approval process, it is difficult to switch to another supplier. If we change a component, re-approval is required and that can take weeks to months," said Beatrix Keim, Business Development Director, German Automotive Research Center.

However, after the meeting between US President Donald Trump and Chinese President Xi Jinping on October 30, on the sidelines of the Asia -Pacific Economic Cooperation (APEC) Summit in South Korea, China took steps to cool down trade tensions with the US. The Chinese Ministry of Commerce issued a statement saying it would review the actual situation and exempt eligible chip batches from the export ban.

Mr. William Yang - International crisis analyst commented: "This move is a remedy to prevent further tension. Specifically in the auto manufacturing industry, although the chip crisis has not completely ended, the situation has stabilized to ensure the supply chain."

The US auto industry welcomed the announcement from China, calling it a positive solution to a situation that had the potential to disrupt the entire industry.

European partners, however, are more cautious. The European Automobile Manufacturers Association said that while this was good news, questions remained about the practical procedures for obtaining export exemptions and that until the flow of goods began to stabilize, the situation would remain tense.

Source: https://vtv.vn/trung-quoc-noi-long-lenh-cam-xuat-khau-chip-100251106051309371.htm