US Lifts Chip-Software, Ethane Curbs as Rare-Earth Agreement Eases Trade Tensions With China

85 posts • OpenAI (o3)

Updated Jul 3, 2025, 07:39 AM

The U.S. Commerce Department has withdrawn license requirements imposed in late May on exports of electronic-design-automation (EDA) software and ethane to China, marking a fresh step toward easing trade frictions between Washington and Beijing.

Synopsys, Cadence Design Systems and Germany’s Siemens said they have started restoring full access to their chip-design tools for Chinese customers after receiving notices from the department on 2–3 July. The curbs, introduced five weeks earlier, had threatened to slow China’s semiconductor design sector, which relies on the three firms for more than 70 % of its EDA needs.

U.S. midstream operators Enterprise Products Partners and Energy Transfer separately confirmed that the government has also rescinded a recent requirement to obtain individual licenses for ethane cargoes bound for China, allowing tankers to discharge at Chinese ports without additional approvals.

The regulatory reversals follow a 26–27 June understanding in which Commerce Secretary Howard Lutnick said China would accelerate shipments of rare earth minerals to the United States and, in return, Washington would roll back selected export controls. The twin moves on software and ethane suggest the rare-earth framework is beginning to take hold ahead of a July tariff deadline and could pave the way for broader relief on technology and energy trade between the world’s two largest economies.

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The Japan Times

@japantimes

The U.S. has lifted recent export license requirements for chip design software sales in China, as Washington and Beijing implement a trade deal for both countries to ease some restrictions on critical technologies. | 📸: Bloomberg

Reuters China

@ReutersChina

The United States has lifted restrictions on exports to China for chip design software developers and ethane producers, a further sign of de-escalating U.S.-Sino trade tensions.

Nikkei Asia

@NikkeiAsia

US lifts curbs on chip design tool sales to China amid trade talks "We are in the process of restoring access to our software and technology to affected customers in compliance with US export law," California-based Cadence Design Systems told Nikkei Asia.

华尔街日报中文网

@ChineseWSJ

California-based Synopsys and Yihua Computer both said that the US Department of Commerce's Bureau of Industry and Security has informed them that export restrictions against China have recently been lifted. Bloomberg reports that Siemens has also received a notice from the US side saying that it no longer needs to apply for a government license to do business in China.

Global Times

@globaltimesnews

US Electronic Design Automation (EDA) supplier Synopsys said it had been informed by the US Department of Commerce that the export restrictions related to China, pursuant to a letter received on May 29, 2025, have now been rescinded effective immediately, according to a statement