The Dutch government announced on Wednesday it was suspending its intervention at computer chipmaker Nexperia after "constructive" talks with China over a dispute that has led to shortages of chips needed by car manufacturers.
The state took effective control of Nexperia on Sept. 30, saying the move was needed to prevent the company's former chief executive from moving its operations to China.
The company is headquartered in the city of Nijmegen but is owned by China's Wingtech Technology. The Netherlands moved to seize control after the U.S. put Wingtech on its "entity list" and subjected it to export controls.
Beijing responded by halting exports of Nexperia's finished products on Oct. 4, a measure it eased in recent days as part of the U.S.-China trade truce following U.S. President Donald Trump's meeting with Chinese leader Xi Jinping.
Dutch Economy Minister Vincent Karremans said on Wednesday that suspending the government intervention under a rarely invoked law represented a gesture of goodwill, adding that talks will continue.
"We 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," he said in a statement.
"In light of these developments, The Netherlands has considered it the right moment to take a constructive step by suspending the order under the Goods Availability Act."
It wasn’t immediately clear from Karremans’ statement who would regain control of operations.
The dispute between the two countries has threatened the supply of chips critical for the global auto industry, with Nexperia's parts widely used by major carmakers in North America, Japan and South Korea.
Automakers warned in recent weeks that they were running low on the chips, and Honda was forced to shut down a factory in Mexico producing its popular HR-V crossover for North American markets.
