EU Seeks Temporary Carve-Out for Banned China Chips to Protect Automakers

Brussels, 22 May 2026 – The European Union is preparing to propose a temporary exemption for a Chinese semiconductor supplier targeted under its latest Russia sanctions package, after European automakers warned that the ban could disrupt vehicle production and intensify supply-chain pressure.

The planned carve-out would temporarily lift restrictions on the Chinese chip supplier, which was among several entities included in the EU’s 20th sanctions package against Russia. The move has drawn concern from automakers that depend on its components, especially as the sector continues to navigate fragile supply chains, weak demand and rising industrial costs.