The European Union may temporarily exempt a Chinese semiconductor supplier from restrictions included in its 20th sanctions package against Russia. According to Bloomberg, Brussels could propose the move as early as this week. Reuters reported the Bloomberg story but noted that it could not immediately verify the details independently.

The company was reportedly among several Chinese and third-country entities added to the sanctions list. The EU’s broader goal is to restrict Russia’s access to high-tech goods, including dual-use components that could support its military-industrial sector. China’s commerce ministry strongly opposed the inclusion of Chinese firms and demanded their removal from the list.

European automakers appear to be the main force behind the possible delay. Bloomberg reported that the industry lobbied the EU for more time, arguing that companies had not yet diversified their supply chains. Carmakers warned that sanctions against the chip supplier could deplete component inventories within weeks and create production risks.

The case highlights the tension inside sanctions policy. Brussels wants to close technology channels that may benefit Russia, but European manufacturers still depend on parts of China’s semiconductor supply chain. A temporary exemption would not necessarily mean a policy reversal. It would more likely be an attempt to avoid collateral damage to Europe’s auto industry while keeping pressure on Russia.