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China has agreed to allow the export of chips critical to auto production, averting widespread shutdowns that had been predicted by the industry The chinese government slammed the netherlands on tuesday over its seizure of chipmaker nexperia, blaming it for jamming up a resolution to a dispute that has disrupted auto sector supply chains. The chips are provided by nexperia, a chinese.

The chinese retaliated by ordering a stop to all exports of nexperia’s chips — most of which are assembled in china. The netherlands’ economy minister vincent karremans said on friday that china could resume supply of chips to nexperia customers in europe and the rest of the world “over the coming days. The dutch government seized control this month of nexperia, owned by chinese company wingtech

The move prompted beijing to block nexperia products from leaving china.

Nexperia’s chinese unit said in late october that its netherlands headquarters had suspended supplies of wafers used to make chips to its factory in china, raising concerns over its ability to deliver finished semiconductors used by many automakers.

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