China said Saturday it will exempt some Nexperia computer chips from an export ban that threatened to seriously disrupt EU car production. European automakers had warned that shortages of chips supplied by Nexperia that would force stoppages at production lines in Europe.

Chinasaid Saturday it will exempt some Nexperia chips from an export ban that was imposed over a row with Dutch officials and has alarmed European businesses.

Anxiety over chip shortages began when theNetherlandsinvoked a Cold War-era law in late September to effectively take control of Nexperia, whose parent company Wingtech is backed by the Chinese government.

China, in response, banned any re-exports of Nexperia chips toEuropeand accused the United States of meddling in Dutch legal procedures to remove Nexperia's Chinese CEO.

Read moreNexperia, the new crisis looming for Europe's carmakers

Beijingblamed on Saturday "the Dutch government's improper intervention in the internal affairs of enterprises" for leading to "the current chaos in the global supply chain".

"We will comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria," a Chinese commerce ministry spokesperson said in a statement.

The resumption of some Nexperia shipments was part of a trade deal agreed by Chinese PresidentXi Jinpingand his American counterpartDonald Trumpafter talks inSouth Koreaon Thursday, the Wall Street Journal reported citing unnamed sources.

Chinese and European Union officials were also to discuss Nexperia while meeting inBrusselsthe same day, EU spokesman Olof Gill had said.

Nexperia produces relatively simple technologies such as diodes, voltage regulators and transistors that are nonetheless crucial, as vehicles increasingly rely on electronics.

The chips are mainly found incarsbut also in a wide range of industrial components as well as consumer and mobileelectronicslike refrigerators.

The company makes them in Europe before sending them to China for finishing and then re-exporting them back to European clients.

Automaker anxiety

Europeancarmakersand parts suppliers had warned of chip shortages supplied by Nexperia that would force stoppages at production lines in Europe.

The chipmaker supplies 49 percent of the electronic components used in the European automotive industry, according to German financial daily Handelsblatt.

The European auto lobby ACEA warned last month that production would be seriously hit.

Read moreEU seeks 'urgent solutions' with China over chipmaker Nexperia

"Without these chips, European automotive suppliers cannot build the parts and components needed to supply vehicle manufacturers and this therefore threatens production stoppages," the group said.

Nexperia's chips, while widely used, are not "unique" in terms of technology and therefore "easily substitutable", French parts maker OPmobility said.

But suppliers must get the new products approved by automakers, which takes time.

Beijing suggested on Saturday that some shipments would resume.

Companies experiencing difficulties could contact the ministry or local commerce authorities, the Chinese ministry spokesperson said.

(FRANCE 24 with AFP)

Originally published on France24