US Lifts Export Restrictions on Semiconductor Design Software to China

Korea Economic Daily

Summary

The U.S. Department of Commerce has announced the lifting of restrictions on semiconductor design software exports to China.
The U.S. has also lifted ethane export regulations, allowing relevant companies to unload ethane in China without separate approval.
Bloomberg reported that this regulatory lifting by the U.S. is a signal indicating the implementation of the agreement reached in London.

Implementation of Trade Agreement with China

Notification of Lifted Restrictions to Companies

The Donald Trump administration has lifted export restrictions on semiconductor design software and regulations on ethane exports to China.

According to Bloomberg on the 2nd (local time), the U.S. Department of Commerce notified the world's three major electronic design automation (EDA) software suppliers—Synopsys, Cadence Design Systems, and Siemens EDA of Germany—that U.S. government licensing requirements no longer apply to their business operations in China. At the end of May, the U.S. Department of Commerce restricted semiconductor design software exports in response to China's rare earth export restrictions, but has lifted them after about a month. At that time, the Department of Commerce sent a letter to these three companies, which account for 70% of China's EDA market share, to inform them of the intent to restrict exports to China.

In addition, the US has also lifted regulations on ethane exports to China. Ethane, a key raw material for major petrochemical products, is produced and exported in the largest volumes globally by the United States. China sourced most of its supply from the U.S. Last month, the Department of Commerce sent letters to major U.S. ethane exporters, including Enterprise Products, stating that while ethane could be loaded onto vessels bound for China, separate approval would be required to unload it at Chinese ports.

However, the Bureau of Industry and Security (BIS) under the Department of Commerce notified on this day that it is rescinding the ethane export license requirements imposed last month, allowing ethane exporters to unload ethane directly in China without the need for separate approval. Samantha Hartke, an analyst at U.S. market analytics firm Vortex, said, "Business is now returning to normal," and, "It is expected that U.S. ethane exports to China will recover to the seasonal average level of 240,000 barrels per day this month."

Bloomberg stated, "The U.S. government's lifting of these regulatory measures is a signal that the deal settled in London is actually being implemented."

Hankyung journalist hankyung@hankyung.com

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