The EU may ease sanctions against a Chinese chip supplier
The European Union plans to temporarily ease sanctions against a Chinese semiconductor manufacturer. According to media reports, this decision is being considered to support and protect Europe’s automotive industry, which relies on chip supplies.
Bloomberg reports this, citing sources in the European Commission.
An unnamed Chinese semiconductor company was included in the 20th package of EU sanctions adopted at the end of April. It includes Chinese companies that supplied Russia with dual-use goods or weapons systems.
European automakers lobbied for a postponement of the ban, arguing that they did not have time to diversify their supply chains and that these sanctions would deplete their inventories within a few weeks.
Additionally, a temporary exemption from the sanctions would require approval by all EU member states.
The EU is changing its procurement rules to reduce dependence on China.
As a reminder, the U.S. and China have agreed to mutually reduce tariffs
As a reminder, Trump arrivedin China for the first time in nearly a decade.
Donald Trump is heading to China for talks with Xi Jinping, where the two sides plan to discuss trade, energy, and Taiwan, against the backdrop of a tense global situation.
