The Netherlands previously gained the power to block or modify Nexperia's decisions through an order. Economic Affairs Minister Vincent Karremans said on social platform X on Wednesday that the order had been revoked as a "show of goodwill".
Bloomberg reported earlier this month that the Netherlands would be prepared to take such a step if it could be confirmed that the company's factories in China were continuing to deliver chips.
This decision marks a significant de-escalation of a dispute that highlighted the nature of global supply chains and highlighted China’s influence. Although the chips produced by Nexperia are not high-end products and the company has only one factory in China, the dispute has disrupted the supply chains of global automakers including Honda and Volkswagen.
In late September, Karemans invoked Cold War-era laws to gain control over Nexperia's decision-making. Nexperia is controlled by China's Wingtech Technology Co. China then used countermeasures to restrict some exports from the company's Guangdong factory, which mainly assembles European-made wafers into chips.
It is reported that the Dutch government's reversal of position stems from previous rounds of consultations between Chinese and Dutch officials as well as Germany, the European Union and the United States. To help break the deadlock, China agreed to relax export restrictions at Nexperia's Guangdong plant, the world's largest wafer assembly plant of its kind.
This week, the Dutch Ministry of Economic Affairs has sent a delegation to Beijing to start negotiations on a "solution acceptable to both parties."