China is blocking Nexperia from exporting products from the Asian nation after the Dutch government moved to seize control of the chipmaker, reports Bloomberg. China retaliated after the Dutch government invoked a Cold War–era law to take control of Nexperia, to ensure Europe retains access to its products. The company is a subsidiary of China’s Wingtech Technology and a key supplier of mature chips used by the automotive and consumer electronics industries.
The Chinese Ministry of Commerce issued an export control notice earlier this month, prohibiting Nexperia China and its subcontractors from exporting some components, the company said in a statement on Tuesday. Nexperia said it is trying to obtain an exemption.
Beijing’s retaliation shows how tensions are ratcheting up between China and Europe leading into high-stakes trade talks with the US. US President Donald Trump and Chinese leader Xi Jinping are set to meet to hammer out a trade accord this month with both sides announcing restrictions in the run up.