USA raise restrictions on chip design software against China
USA raise restrictions on chip design software against China
The government of US President Donald Trump has lifted the restrictions on the export of chip design software to China. This is done as part of the efforts of Washington and Beijings, the tensions in the course of a new trade agreement to reduce.
cancellation of export restrictions
The three leading companies in the area of chip design software-Synopsys, Cadence and Siemens-confirmed that they were informed by the US Ministry of Department about the cancellation of the export restrictions introduced in May.
background of the trade restrictions
The USA had set the sale of important software tools that are needed to develop semiconductors to China. This measure was a reaction to Beijing's effective interruption of the Rare earth exports Conflict between the two countries led after a trade agreement had been achieved in Geneva in May.
a step towards trade agreements
The announcements of the companies indicate that the two largest economies in the world steps towards the Implementation one recently formalized trade agreement companies that focus on rare earths. As part of this agreement, the United States would be its Export restrictions The chemical product ethylene and other goods, while China cancel the export less often approved to the United States.
restoration of access to software
The US company Cadence and the German company Siemens confirmed CNN that export controls are no longer in force. Synopsys explained in a Explanation that a previous letter from the Ministry of Commerce was withdrawn to export restriction.
influence on the Chinese semiconductor industry
experts have already pointed out that the US export controls for software for chip development, also known as Electronic Design Automation (EDA) software, could have catastrophic effects on China's semiconductor industry, since this software is crucial for the production of new microchips. According to a report by the state Chinese news agency xinhua check these three companies 70% of the EDA market in China.
trade war and current developments
The restriction of the chip software was a brief escalation in the efforts of the United States to further tighten the access of China to technology-drawn semiconductor technologies that started during Trump's first term. These measures aim to prevent Beijing from using American technologies to strengthen its military and AI skills.
On Wednesday, the Trump administration also sent a letter to American ethylene producers to cancel export restrictions that had previously stopped delivering the chemical product to China, Reuters reported. According to CNN last year, almost 50% of US exports of ethylene, which is mainly used for plastic production, went to China.
rare earths and customs questions
In the course of the trade war in April, China has its Global dominance less sovereign in the supply chain License requirements for the export of seven species less frequent earth and various magnets. These materials are required for everything from everyday electronics and vehicles to expensive gun systems such as fighter jets. China controls 90% of global processing less frequently.
Although after the talks in Geneva in May a 90-day announced, Pijing loosened up these controls Not what led to a new annoyance in Washington. This led to renewed tensions between the two nations that threatened to endanger the temporary trade agreement on the return of retaliation tariffs before the two sides met again in London last month.
After the meeting in London, China agreed to accelerate the river less frequently under the current license regulations, while the USA would eliminate the associated “opposite measures”, including export controls for chip software, ethylene and aircraft engines.
However, the last agreement does not seem to treat the still high tariffs, which both countries have imposed on each other. The ceasefire is scheduled to run out in August. The US tariffs on Chinese goods are currently around 55%, according to Trump, a value that also includes a 10%"mutual" customs fee on commercial law partners in April and a 20%customs fee for China's role in the illegal fentanyl flow in the USA.
In contrast, Trump After the London conversations that Chinas tackle on US goods would be set at 10%. It was unclear whether this value has only referred to new tariffs since April, since Beijing has already raised tariffs on US goods, among other things as retaliation for the fentanylasts. Chinese official the agreement not when they were asked by reporters.
The reporting comes from CNN employees Yong Xiong and Simone McCarthy.
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