U.S. Loosens Export Restrictions to Ease China Trade Tensions

The United States has eased restrictions on exports to China for developers of chip design software and ethane producers, signaling a de-escalation in trade tensions with Beijing. This move follows Chinese concessions on rare earth exports, crucial for several industries, including automotive and aerospace.

The initial restrictions, part of former President Donald Trump's measures, were a response to China's export suspension of rare earths. These rare earths are vital for industries like semiconductors and defense. To avoid jeopardizing a potential trade deal, both countries have agreed to a framework to review export applications for controlled items.

Major firms like Synopsys, Cadence Design Systems, and Siemens have restored software access to Chinese customers. However, it's unclear if other U.S. countermeasures, such as licensing suspensions for aircraft and nuclear equipment exports, have been lifted.

(With inputs from agencies.)