New York (Reuters) – The United States has suspended export restrictions to China from chip design software and ethane products, plus a sign of reduced commercial tensions with China, including Beijing concessions on rare lands.
Synopsys, Cadence Design Systems and Siemens, three of the world’s largest electronic design automation software developers (EDA), said on Wednesday they are restoring access to their clients in China’s software and technologies.
The US also sent letters to ethane producers to terminate a restrictive licensing requirement for exports to China imposed in late May and June.
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The restrictions imposed on EDA software developers and ethane producers were just a few of the many contracted by the government of US President Donald Trump in response to the suspension of rare land exports and magnets through China in April.
Beijing’s measure in relation to the rare lands, part of the retaliation against the previous tariffs imposed by Trump this year, has affected the offer chains for automakers, aerospace manufacturers, semiconductor companies and military contractors. The issue threatened to ruin a bilateral trade agreement.
On Friday, the China Ministry of Commerce said that after conversations with the US, both sides confirmed a structure under which China will analyze the export requests of controlled items, while the US will cancel corresponding restrictive measures.
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“The US intensified and then relieved. They have imposed restrictions on many other items to get the Chinese to retreat from the rare lands,” according to a source familiar with discussions within the US government.
“As the US and China continue to maintain this agreement, we will see many of these restrictions disappear. We will return to the status quo, where we were in February/March,” said the source, who was not allowed to talk to the media and did not want to be identified.
