The Trump administration has removed export restrictions on chip design software to China, signaling a step toward easing tensions between Washington and Beijing under a trade deal.
Following the decision, three major U.S. chip design software companies—Synopsys, Cadence, and Siemens confirmed that they received a notice from the U.S. Commerce Department stating that the export restrictions imposed in May have been lifted.
The United States halted the sale of semiconductor design software to China in response to Beijing’s move to restrict rare earth exports, an action that reignited tensions between the two nations shortly after a trade truce in Geneva in mid-May.
As part of the trade agreement finalized last week, which focuses on rare earth elements, the U.S. will remove export restrictions on chip design software, ethane, and other products, while China will authorize shipments of critical rare earth minerals to the United States.
According to Reuters, the Trump administration also issued letters on Wednesday lifting license requirements for ethane exports to China, enabling producers such as Enterprise Products Partners and Energy Transfer, along with traders Satellite Chemical USA and Vinmar International, to resume shipments.
In April, China made use of its strategic position in the global rare earth supply chain by introducing new licensing rules for the export of seven rare earth minerals and various types of magnets. These materials are essential for various technologies, including consumer electronics, automobiles, and advanced military systems such as fighter jets. China currently handles 90% of the world’s rare earth processing.
A spokesperson for China’s Ministry of Commerce on Friday stated that Beijing will evaluate and authorize export applications for qualified items in line with legal regulations, while the United States will lift a range of restrictive measures previously imposed on China as part of the agreement.
Although the deal marked progress, it did not tackle the steep tariffs that remain in place between the United States and China, and the temporary truce is expected to end in August.
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