In a significant shift under a new trade deal, the Trump administration has lifted certain export license requirements for selling chip design software to China, signalling a tentative easing of technology restrictions between the world’s two largest economies.
The move comes as Washington and Beijing implement a bilateral agreement that encourages freer trade of critical technologies, provided both nations uphold their respective obligations.
According to a statement by Germany’s Siemens AG, one of the world’s leading electronic design automation (EDA) software providers, the US Commerce Department has notified the company that it no longer needs a government license to do business in China.
“Siemens has restored full access to its software and technology for its Chinese customers,” the company confirmed.
Initially, the Trump administration had imposed strict export controls in May, responding to China’s restrictions on the export of essential rare-earth minerals. However, under the newly finalized trade agreement, Washington agreed to resume shipments of chip design tools, ethane, and jet engines to China — on the condition that Beijing expedites its export approvals for critical minerals.
Silence From US Firms and Officials
The other two dominant EDA software providers, Cadence Design Systems Inc. and Synopsys Inc., did not respond to media inquiries about whether they had received similar notices. The US Commerce Department also did not immediately comment.
A Pause in the Semiconductor Tech War?
The brief clampdown on EDA software sales to China had marked an escalation in Washington’s efforts to limit Beijing’s semiconductor and AI capabilities. US firms such as Cadence and Synopsys produce tools essential for designing everything from cutting-edge processors used by Nvidia and Apple, to basic chip components.
This recent development could reflect a more strategic balancing act by the Trump administration — pursuing economic leverage without fully decoupling from China’s lucrative tech sector. However, the long-term stability of such cooperation remains uncertain, especially given ongoing tensions over intellectual property, cybersecurity, and geopolitical influence in the tech space.