The Dutch government announced on Wednesday that it has suspended its intervention at Chinese-owned semiconductor company Nexperia, following constructive discussions with Chinese authorities. Dutch Economy Minister Vincent Karremans described the move as a “show of goodwill,” noting that Beijing now appears to allow European and other companies to export Nexperia chips—a development seen as a positive step in easing the global chip shortage.

The intervention, originally invoked under the Cold War-era Goods Availability Act in September, was prompted by U.S. security concerns and fears that Nexperia’s chip technology, crucial for automotive, consumer electronics, and other industries, could become inaccessible in an emergency. China had responded by blocking exports of the company’s products.

The Dutch Ministry of Economic Affairs said the suspension is a constructive step while talks with Chinese authorities continue. China’s Commerce Ministry called it a “first step in the right direction,” emphasizing the need for further measures to stabilize global semiconductor supply chains.

The European Union welcomed the decision, with trade chief Maros Sefcovic noting that it will help secure reliable flows in strategic supply chains. Shares of European auto makers, heavily reliant on Nexperia chips, showed mixed trading following the announcement.