The Dutch government announced on Wednesday that it is suspending its intervention at chipmaker Nexperia following what it described as constructive talks with China over a dispute that has caused chip shortages for car manufacturers.

While the decision may reassure customers that tensions between China and the Netherlands over Nexperia are easing, supply chain challenges remain unresolved.

Even the dispute between Nexperia’s European headquarters and its Chinese parent Wingtech remains which was sparked by the Dutch state taking control of Nexperia on September 30.

The Dutch government said the move was needed to prevent Nexperia’s former CEO from moving its operations to China. Beijing responded by halting exports of Nexperia’s finished products on October 4, a measure it has since p

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