Last month, China blocked exports of small computer chips used in cars.
Many experts feared car factories around the world would have to pause work. They remembered how car prices rose after the pandemic when chips were missing.
The chips come from Nexperia, a company in the Netherlands that is owned by a Chinese firm. Nexperia makes about 40% of the chips like transistors and diodes used in cars.
The Dutch government took control of Nexperia and changed its Chinese CEO. It said national security was the reason.
In response, China stopped the shipment of Nexperia chips.
United States President Donald Trump met Chinese leader Xi Jinping last week.
After the meeting, China said car makers could ask for special permits to get the chips. It said it wanted to keep the supply chain stable.
A trade group in the United States thanked President Trump. It said the move would keep factories working.
A European group was happy too, but it warned that questions remain. It wants to see chips moving again before it feels safe.