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, BBC reported.

In September, the Netherlands invoked a Cold War-era law to take control of Nexperia, stating "serious governance shortcomings" which could impact the availability of chips - which are critical for making cars - in an emergency.

China said in response that it would not re-export Nexperia chips completed in its Chinese factories to Europe. Last month, the likes of Volvo Cars and Volkswagen warned it could lead to temporary shutdowns at their plants, according to BBC.