China has lifted export controls on computer chips vital to car production, the country’s commerce ministry has said.

Exemptions have been granted to exports made by Chinese-owned Nexperia for civilian use, it said, which should help carmakers who had feared production in Europe would be hit.

In October, the Dutch government took control of Nexperia, which is based in the Netherlands but owned by Chinese company Wingtech, to try to safeguard the European supply of semiconductors for cars and other goods.

In response, China blocked exports of the firm’s finished chips. However, it said earlier this month it would begin easing the ban as part of a trade deal struck between the US and China.

While Nexperia is based in the Netherlands, about 70% of its chips made in Europe are sent to China to be completed and re-exported to other countries.

When it took control of the company, the Dutch government said it had taken the decision due to “serious governance shortcomings” and to prevent the company’s chips from becoming unavailable in an emergency.

But when China blocked exports of chips from Nexperia, there were worries that it could create global supply chain issues.

In October, the European Automobile Manufacturers’ Association (EMEA) had warned Nexperia chip supplies would only last a few weeks unless the Chinese ban was lifted.

Earlier this month, the EMEA’s director general Sigrid De Vries told the BBC that “supply shortages were imminent”.

Volvo Cars and Volkswagen had warned that a chip shortage could lead to temporary shutdowns at their plants, and Jaguar Land Rover also said the lack of chips posed a threat to its business.

But on Saturday, EU trade commissioner Maros Sefcovic announced in a post on X that China had agreed to “the further simplification of export procedures for Nexperia chips” and it would “grant exemption from licensing requirements to any exporter” provided the goods were for “civilian use”.

“Close engagement with both the Chinese and Dutch authorities continues as we work towards a lasting. stable predictable framework that ensures the full restoration of semiconductor flows.”

In its statement, China’s commerce ministry called on “the EU to continue exerting its influence to urge the Netherlands to correct its erroneous practices as soon as possible.”

The Co-op has said it is pushing forward with a number of new stores and major refurbishments as it bounces back from a damaging cyber attack.

The retailer said 50 stores will be opened or re-opened by Christmas as it urged the Government to reform business rates ahead of the autumn Budget.

It said reforms will be “vital” to encourage further high street investment as it continues with its own expansion ambitions.

The latest slew of openings will take the Co-op’s store openings and refurbishments to more than 200 sites for the latest financial year.

It added that the programme will have seen the business invest more than £200 million across the store estate.

The Co-op will open 14 new stores, which include it becoming the first permanent retailer at the new Brent Cross Town development in London, five new micro-format ‘on the go’ stores and a new franchise store at Lancaster University.

The remainder of the 50 stores will consist of sites which have been closed for a lengthy period to undergo an extensive refurbishment and will re-open with a new look and updated product range.

Growth efforts come as the group, which has around 6.9 million member-owners, continues to recover from a major cyber attack.

It said in September that the hack, which took place in April, will knock its annual earnings by around £120 million.

Meanwhile, it said the cyber attack, which left it with bare shelves and saw data stolen for all its members, impacted on sales by about £206 million.

The group said the hackers impersonated workers to trick employees into giving them access to their accounts.

They created a copy of one of the firm’s files but were unable to attack its platforms further and install ransomware.

On Monday, the group, which runs more than 2,300 food stores, made renewed calls for property tax reform and increased certainty from the Government ahead of the autumn Budget.

Shirine Khoury-Haq, Co-op Group chief executive, said: “We’re investing in stores and communities right across the UK because we believe in the future of the high street.

“But sustained growth needs certainty. Business rates reform is vital if retailers – especially the 99% who run small stores – are to plan with confidence, protect jobs and keep local economies thriving.

“Co-op is showing what’s possible when businesses commit to communities.

“The Government now has an opportunity in the autumn Budget to do its part by delivering the reform that’s long been promised – giving every retailer, from small to large, the stability to invest and grow.”

The US air cargo industry is bracing for fresh turbulence as the Federal Aviation Administration’s (FAA) 10% reduction in flight capacity across 40 major airports collides with the grounding of UPS and FedEx’s McDonnell Douglas MD-11 fleets, deepening pressure on supply chains ahead of the crucial Thanksgiving and holiday shipping season.The FAA ordered airlines to cut domestic flight operations by 10% between 6 a.m. and 10 p.m. local time, citing air traffic controller shortages caused by the prolonged government shutdown, AP reported. The decision affects key hubs with major parcel distribution centres — including FedEx’s Memphis and Indianapolis bases and UPS’ Worldport hub in Louisville, Kentucky, where a deadly cargo plane crash this week killed 14 people, including three crew members.Both companies announced they were grounding their MD-11 aircraft “out of an abundance of caution”, removing a significant chunk of capacity — roughly 9% of UPS’ fleet and 4% of FedEx’s. The double blow has prompted concerns about rising strain on logistics networks just weeks before the peak shopping period.“This is such a stressful time for both companies,” said Patrick Penfield, supply-chain management professor at Syracuse University, quoted AP. “You’ve got a surge in demand, and then you just lost some of your capacity. They’re already scrambling, and now they’re going to scramble even more.” Penfield warned that shoppers could face delivery delays of up to two days in mid-December, urging consumers to order early.While most air freight is international — and thus largely unaffected by the FAA directive — the cutback in domestic passenger flights, which carry about 35% of global trade by value, is expected to cause short-term constraints.FedEx said it had made “operational modifications” to keep shipments moving “safely and swiftly,” while UPS assured customers that its network remains “safe, resilient and reliable.” Both carriers said most of their flights operate outside the restricted hours, reducing immediate impact on overnight deliveries.Still, industry leaders warned of ripple effects. Mike Short, president of global freight forwarder C.H. Robinson, said the reduction in commercial flights could tighten domestic air capacity and extend transit times. “Trucks and expedited ground networks can absorb some displaced volume, but not without challenges,” he said.Smaller high-value goods such as smartphones, chips and consoles rely heavily on air transport, and experts say those shipments may face mild disruption. However, ground transport networks are expected to offset part of the capacity loss for domestic parcels.“Air cargo depends on every part of the aviation ecosystem working in sync,” said Brandon Fried, executive director of the Airforwarders Association. “When capacity is cut and federal employees are stretched thin, the supply chain slows — and the longer this shutdown continues, the worse it will get.”Despite the turbulence, logistics experts say the sector has become more resilient and adaptive after years of pandemic-related shocks. “Airlines have become very good at consolidating loads and rerouting via secondary hubs,” said Eytan Buchman, chief marketing officer of Freightos. “In the near term, space may feel tighter, but this isn’t a one-to-one loss in capacity.”For now, industry watchers expect limited delays — but warn that if the shutdown drags into December, America’s holiday deliveries could face their biggest stress test in years.