The Dutch government suspended its powers over chipmaker Nexperia, handing back control to its Chinese owner and defusing a standoff with Beijing that had begun to hamper automotive production around the world.

The Dutch government has stepped back from its emergency intervention at chipmaker Nexperia, easing a months-long confrontation with China that disrupted global automotive supply chains and raised questions about Europe's handling of foreign ownership in strategic industries.

The Netherlands has suspended its proposed takeover of Chinese-owned chip maker Nexperia in a sign of "good will" towards Beijing, Dutch Economy Minister Vincent Karremans said Wednesday.

The Dutch government handed back control of the semiconductor manufacturer, moving toward resolving a spat that had blocked vital chip supply to the auto industry.

The Dutch government has suspended its unprecedented plan to take supervisory control of the Chinese-owned chipmaker Nexperia. The whole affair has been quite a saga. This latest development is the center of a six-week standoff between the EU and Beijing that threatened to halt car production in multiple countries.