The Dutch government on Wednesday said it suspended its intervention at Chinese-owned chipmaker Nexperia, following constructive talks with Chinese authorities.

“We see this as a show of goodwill,” Dutch Economy Minister Vincent Karremans said in a statement, posted on social media platform X.

In a separate letter to parliament, Karremans said it had become clear Beijing now appeared to be permitting companies from European and other countries to export Nexperia chips, adding that “this is an important step.”

The development appears to bring an end to a bitter dispute between the Netherlands and China, one that had prompted global automotive groups to raise the alarm over a worsening chip shortage.

CNBC has reached out to Nexperia, which is based in the Netherlands but owned by the Chinese company Wingtech, and the Chinese embassy in the U.K. for comment.

The situation involving Nexperia began in September, when the Dutch government invoked a Cold War-era law to effectively take control of the company. The highly unusual move was reportedly made after the U.S. raised security concerns.

In making the decision, the Dutch government cited fears that technology from the company — which specializes in the high-volume production of chips used in automotive, consumer electronics and other industries — “would become unavailable in an emergency.”

China responded by blocking exports of the firm’s finished products.

— CNBC’s Michael Wayland contributed to this report.