Beijing has said it will loosen a chip export ban it imposed after Dutch authorities took over Nexperia - a Chinese-owned chipmaker based in the Netherlands.
In September, the Netherlands used a Cold War era law to take over the company after citing "serious governance shortcomings" and to prevent the chips from becoming unavailable in an emergency.
In response, China said it would not re-export completed Nexperia chips to Europe which raised concern among carmakers. One association had described the move as "alarming".
Around 70% of chips made in the Netherlands are sent to China to be completed and re-exported to other countries.
In a statement on Saturday, China said that it would "comprehensively consider the actual situation of enterprises and grant exemptions to exports that meet the criteria". However, it has not specified what that could entail.
