Hong Kong — The Dutch government said Wednesday it’s relinquishing control of Chinese-owned chipmaker Nexperia, easing a standoff between China and the Netherlands that threatened supplies of semiconductors vital for global auto manufacturing.

Economics Affairs Minister Vincent Karremans said he was suspending an earlier order to take control of Nexperia under a rarely invoked Cold War-era law .

The Dutch government had cited national security concerns and “serious governance shortcomings” when it took effective control of Nexperia, which is headquartered in the city of Nijmegen but owned by China’s Wingtech Technology. Officials said they were trying to prevent the loss of crucial tech know-how that could threaten Europe’s economic security.

Nexperia chips are widely used b

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