As trade war truce with China holds, US lifts curbs for chip design software and ethane

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NEW YORK - 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 including concessions from Beijing over rare earths.

Synopsys, Cadence Design Systems and Siemens, three of the worlds largest electronic design automation (EDA) software developers, said on Wednesday they are restoring access to their software and technology for customers in China.

Earlier in the day, the U.S. also sent letters to ethane producers to rescind a restrictive licensing requirement on exports to China imposed in late May and June.

The restrictions on EDA software developers and ethane producers were just some of many countermeasures imposed by U.S. President Donald Trumps administration in response to Chinas export suspension of rare earths and related magnets in April.

Beijings move on rare earths, part of retaliation against Trumps earlier tariffs this year, has upended supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors. The issue threatened to scupper a bilateral trade deal.

On Friday, Chinas commerce ministry said that following talks with the U.S., the two sides have confirmed a framework under which China will review export applications for controlled items while the U.S. will cancel corresponding restrictive measures.

The U.S. have escalated to de-escalate. They put restrictions on many more items in order to get the Chinese to back off on rare earths, according to a source familiar with discussions inside the U.S. government.

As the U.S. and China continue to hold to this framework agreement, were gonna see a lot of these restrictions go away. Going back to a status quo, where we