China has lifted export controls on computer chips vital to car production, the country's commerce ministry has said.
Exemptions have been granted to exports made by Chinese-owned Nexperia for civilian use, it said, which should help carmakers who had feared production in Europe would be hit.
In October, the Dutch government took control of Nexperia, which is based in the Netherlands but owned by Chinese company Wingtech, to try to safeguard the European supply of semiconductors for cars and other goods.
In response, China blocked exports of the firm's finished chips. However, it said earlier this month it would begin easing the ban as part of a trade deal struck between the US and China.
While Nexperia is based in the Netherlands, about 70% of its chips made in Europe are sent to China to be completed and re-exported to other countries.
