EU Proposes Temporary Sanctions Exemption for Chinese Chipmaker

The European Commission has proposed a nine-month sanctions exemption for Chinese semiconductor company Yangzhou Yangjie Electronic, which features in the EU's 20th sanctions package against Russia.

The firm will remain on the EU's sanctions list, but the temporary relief is intended to give carmakers time to find alternative chip supplies and prevent severe disruption to production. The proposal still requires unanimous approval by EU member states.

European carmakers have grown more dependent on the company's products after sanctions hit its Chinese competitors, according to the Commission.

Brussels placed the firm on the sanctions list for providing significant support to Russian military capabilities. Its components have been found in drones and glide bombs used by the Russian military in Ukraine.

(reuters, bak)