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The United States has officially dropped export restrictions on advanced chip-design software to China.

Some shit you should know before you read: Back in May, the US imposed export restrictions on chip-design software to China as part of a broader strategy to curb Beijing’s access to critical semiconductor technologies. These controls targeted electronic design automation (EDA) software (which is vital for creating advanced microchips). These were rolled out right after China imposed restrictions on rare earth exports (which it holds a near-monopoly on) and are used for high-tech manufacturing and defense systems. At the time of the restrictions, US officials cited national security concerns, fearing that unrestricted access to EDA tools could enable China to accelerate its military and artificial intelligence advancements.

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What’s going on now: First reported by Bloomberg and CNBC, the US reversed its chip-design software export restrictions to China just weeks after the original controls were imposed in May. The reversal came as part of a broader trade agreement finalized between Washington and Beijing during high-level negotiations in London, aimed at easing tensions that had reignited over rare earth mineral exports.

Under the terms of the deal, the US agreed to lift export curbs on EDA software, ethane, and jet engines in exchange for China resuming and accelerating the approval of rare earth shipments.

The US Commerce Department informed the three dominant EDA software firms—Synopsys, Cadence, and Siemens—that the export license requirements had been rescinded.

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