U.S. Lifts Export Curbs On Chip Software And Ethane Shipments To China

The United States has removed export restrictions on chip design software and ethane shipments to China, a move seen as easing recent trade tensions between the two countries, reported Jenny McCall for Yahoo Finance.

Software companies Synopsys, Cadence, and Siemens have restored access to their Chinese customers. I Photo: Siemens Facebook

The decision comes after China made concessions on its rare earth export controls, which had disrupted global supply chains for industries such as automotive, aerospace, and defense.

As a result, software companies Synopsys, Cadence, and Siemens have restored access to their Chinese customers.

These firms develop key electronic design automation (EDA) tools essential for chipmaking.

The U.S. has also lifted licensing requirements for ethane exports. The previous restrictions were part of a Trump-era policy aimed at pressuring China to ease its grip on rare earth materials.

China’s Ministry of Commerce recently confirmed that both countries had agreed on a framework: China will now review export applications for certain controlled items, while the U.S. will remove its corresponding trade restrictions.

“The U.S. escalated to de-escalate,” said a source familiar with internal U.S. government discussions. “They placed restrictions on a broader range of items to pressure China into backing off on rare earths.”