US Lifts China Export Curbs on Chip Design Software, Ethane

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Jul 4, 2025 - 10:00 Updated: Jul 4, 2025 - 09:52
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US Lifts China Export Curbs on Chip Design Software, Ethane
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The U.S. Commerce Department has rolled back export restrictions it recently imposed on chip designing software and ethane, indicating further de-escalation of trade tension with Beijing.

The Bureau of Industry and Security (BIS) on Wednesday wrote to Synopsys, Cadence Design Systems, and Siemens—three of the world’s largest electronic design automation (EDA) software developers—and energy companies Enterprise Products Partners and Energy Transfer, notifying them of the policy change.

Ethane traders Satellite Chemical USA and Vinmar International also received letters from the BIS.

Siemens and Cadence stated that the BIS had informed them of a new license requirement for EDA products exported to China on May 23. Synopsys said it was notified on May 29.

Long-term restrictions on Chinese access to EDA software would have significantly hampered China’s chip design industry. Synopsys, Cadence, and Siemens command more than 70 percent of China’s EDA market, Chinese state news agency Xinhua reported in April.

In a statement published on Thursday, Siemens CEO Tony Hemmelgarn said the company has now “restored full access” to affected software and technology, and “resumed sales and support to Chinese customers” in light of the lifting of restrictions.

Synopsys and Cadence said they are in the process of restoring access to related products in China in their filings with the U.S. Securities and Exchange Commission.

According to filings by Enterprise and Energy Transfer, BIS imposed export restrictions on their ethane shipments to China on June 1 and June 3, respectively.

The restrictions on EDA software developers and ethane producers were part of the countermeasures imposed by Washington in response to Beijing’s export suspension of rare earths and related magnets in April.

Beijing’s move on rare earths was part of retaliation against U.S. President Donald Trump’s earlier tariffs this year.

In May, China’s export of rare-earth magnets to the United States plummeted to 51 tons from 272 tons in April and a peak of 967 tons in January, upending supply chains central to automakers, aerospace manufacturers, semiconductor companies, and military contractors.
Following talks in Geneva and London, Beijing agreed to resume supplying rare earths, and U.S. Commerce Secretary Howard Lutnick said U.S. countermeasures would come off “in a balanced way.”

It was not immediately clear if other countermeasures had been lifted. These include the suspension of licenses for GE Aerospace to ship jet engines for the C919 aircraft of Chinese airplane maker COMAC, as well as for nuclear equipment suppliers to sell to Chinese power plants.

On Tuesday, Treasury Secretary Scott Bessent stated that the rate of China’s rare earth exports to the United States has not yet recovered to its pre-April level, when Beijing imposed the restrictions. He said the administration is “confident” that Beijing would “live up to their side of the deal.”

The Epoch Times reached out to Synopsys, Cadence, Enterprise, Energy Transfer, Satellite, and Vinmar. Cadence said it won’t be providing additional information.

The Epoch Times reached out to the BIS and the White House for comment but did not receive a response by publication time.

Reuters contributed to this report.
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