US Lifts Ban on Chip Software Exports to China Amid Tech Truce

In Brief:

The US has officially lifted export restrictions on chip design software to China, restoring access for firms like Siemens.

The move follows broader trade resolutions between the two nations, including rare earth and ethane agreements.

The United States has lifted key restrictions on the export of chip design software to China, signaling a major shift in tech trade policy and a step toward easing tensions with Beijing. German tech giant Siemens confirmed that it received official notice from the US government allowing it to resume full access to Chinese markets, Bloomberg reported.

The reversal is part of a broader thaw in US-China trade relations. In recent weeks, the two countries resolved a standoff over rare earth minerals and magnet shipments, and the US rescinded new licensing rules for ethane exports to China. Together, these actions represent a coordinated rollback of recent technology sanctions that had disrupted the global semiconductor supply chain.

China’s Ministry of Commerce stated that both nations have agreed on a new trade framework. Under this arrangement, China will review applications for exports of controlled items, while the US will cancel corresponding export restrictions, effectively restoring normal operations between chipmakers and their Chinese clients.

Prior to the easing of restrictions, companies such as Cadence Design Systems, Synopsys, and Siemens EDA had been forced to suspend services in China, affecting electronic design automation (EDA) software vital to chip development. The export ban had also impacted other sectors, including nuclear technology, aviation, and jet engine manufacturing.

The latest developments provide relief to both US tech firms and Chinese manufacturers, many of which had struggled under supply chain disruptions and licensing delays. Synopsys, for example, has already resumed some services in China, reflecting the shifting regulatory landscape.

This move is seen as a stabilizing gesture in the ongoing US-China tech rivalry, especially as both countries seek to balance national security concerns with economic interdependence. For the semiconductor industry, the lifting of the chip software export ban marks a critical step toward trade normalization and renewed international cooperation.

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