Sawt Falasteen - EU seeks 'urgent solutions' with China over chipmaker Nexperia

The crisis began when Dutch officials invoked a Cold War-era law in late September to effectively take control of Nexperia, a Chinese-owned firm whose factories are in Europe.

In response, China banned any re-exports of Nexperia chips to Europe, igniting fresh geopolitical tensions.

European carmakers and parts suppliers have warned of shortages of key chips supplied by Nexperia that would force stoppages at production lines in Europe.

EU spokesman Olof Gill said trade commissioner Maros Sefcovic had been in contact this week with Chinese and Dutch officials.

"The aim is to find a swift resolution to this problem, which, as you rightly pointed out, is a serious one, and which has raised many concerns from European industry," Gill told reporters.

He said the issue would be discussed Thursday with Chinese officials in Brussels.

"We reaffirm that we're in touch with both sides and we're trying to find a solution urgently," Gill said in Brussels.

The European auto lobby ACEA warned Wednesday of "imminent disruption" to car production on the continent because of the worsening critical chip shortages.

"Our members are telling us that part supplies are already being stopped due to the shortage. This means assembly line stoppages might only be days away," ACEA director general Sigrid de Vries said.

Separately, China's export restrictions on rare minerals -- crucial to the auto, electronics and defence sectors -- have also raised hackles in Brussels, and will dominate Thursday's talks.

The European Union says China's curbs have already forced some of the bloc's companies to halt production and have inflicted economic harm.

R.Shaban--SF-PST