Export Rule That Roped in 20,000 Chinese Firms Suspended in U.S.-China Deal
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A container ship sails past the Qingdao Port on July 10, 2025. Photo: Bloomberg
The United States has agreed to suspend a sweeping export control regulation for one year under a trade truce with China, following trade talks in Kuala Lumpur, China’s Ministry of Commerce announced Thursday.
The move temporarily halts Washington’s 50% ownership rule, which had vastly expanded Entity List restrictions and swept in thousands of Chinese firms.
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- The U.S. suspended its 50% ownership export control rule for one year in a trade truce with China, halting restrictions affecting nearly 20,000 Chinese firms.
- China paused retaliatory export controls, while the Dutch government froze assets of China-owned Nexperia, central to the dispute.
- Suspension may influence ongoing Dutch actions against Nexperia; both sides are in talks to resolve related regulatory and diplomatic tensions.
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Who’s Who
- Wingtech Technology Co. Ltd.
- Wingtech Technology Co. Ltd. is a Chinese firm that acquired Nexperia for over $4.76 billion by 2020. It was added to the U.S. Entity List in December 2024. The company has been at the center of U.S.-China tech tensions, with its ownership of Nexperia directly affected by the U.S. 50% ownership rule and subsequent Dutch government actions.
- Nexperia NV
- Nexperia NV, a Dutch-based company formerly part of NXP Semiconductors NV, is owned by China's Wingtech Technology Co. Ltd. Its case has been central to recent US-China tensions over export controls. The Dutch government froze Nexperia's assets due to national security concerns after the US implemented its "50% ownership rule." Nexperia became the first major overseas company directly impacted by this rule.
- NXP Semiconductors NV
- NXP Semiconductors NV is the former parent company of Nexperia NV. Nexperia, now owned by China's Wingtech Technology Co. Ltd., has been central to recent US-China tech tensions after being impacted by the US's 50% ownership rule.
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What Happened When
- By 2020：
- Wingtech completed its acquisition of Nexperia, spending over 33.8 billion yuan.
- 2024-12：
- Wingtech was added to the U.S. Entity List.
- 2025-06-12：
- Dutch Foreign Ministry and the U.S. BIS held a meeting; Washington raised concerns about Nexperia’s Chinese CEO.
- 2025-09-29：
- The U.S. introduced the 50% ownership rule extending export restrictions.
- Shortly after 2025-09-29：
- The Dutch government froze Nexperia’s global assets or operations for one year.
- 2025-10-04：
- China retaliated by banning exports of certain components made by Nexperia’s China operations.
- After 2025-10-04：
- Beijing expanded its export controls and added several U.S. drone-related defense firms to its “Unreliable Entity List.”
- 2025-10-19：
- Dutch Economic Affairs Minister Micky Adriaansens commented on the U.S. and Dutch measures against Nexperia.
- 2025-10-21：
- China’s Commerce Minister Wang Wentao spoke by phone with Micky Adriaansens regarding Nexperia and supply chain stability.
- 2025-10-21：
- Micky Adriaansens stated on social media X that both sides were working towards a balanced solution for Nexperia.
- 2025-10-30：
- The U.S. agreed to suspend the export control regulation for one year under a trade truce with China, as announced by China’s Ministry of Commerce.
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