The Dutch government is reportedly prepared to suspend its emergency powers over chipmaker Nexperia if China resumes exports of critical semiconductor components, according to a Bloomberg News report on Friday citing people familiar with the matter.

The move could mark a thaw in the recent trade dispute that has disrupted supply chains across Europe’s auto and electronics industries.

The Dutch intervention, introduced in September, gave the government veto rights over key corporate decisions at Nexperia for one year. Authorities said the measure was intended to safeguard national security and ensure the continuity of chip production amid concerns about Chinese ownership and export restrictions.

However, Bloomberg reports that Dutch officials are ready to lift or suspend the order as early as next week — provided China resumes shipments of essential chips and the supply flow is independently verified in the coming days.

When contacted by Reuters, Nexperia did not immediately respond to requests for comment.

Speaking on Thursday, Dutch Economy Minister Vincent Karremans expressed optimism that Nexperia’s chips would soon reach customers across Europe and beyond.

“We will support these developments and will take the appropriate steps on our part where necessary,” Karremans said, without confirming whether this included revoking the government’s special intervention powers.

A spokesperson for his office declined to comment further on the government’s next move.

The dispute over Nexperia, which is owned by Chinese electronics firm Wingtech Technology, has strained trade relations between Beijing and The Hague. The Dutch government has faced pressure from both the European Union and the United States to tighten export controls on chip technology, citing security and strategic concerns.

Meanwhile, a shortage of Nexperia’s components has rippled through automotive supply chains, forcing some European manufacturers to curtail production and furlough workers. Nexperia’s chips are widely used in vehicles, smartphones, industrial systems, and consumer electronics.

If the Dutch government follows through with its plan to lift the restrictions, it could help ease Europe’s chip supply bottlenecks and reduce diplomatic tensions with China — at least temporarily.