The Commerce Department notified leading electronic design automation (EDA) firms—Synopsys, Cadence, and Siemens—that they no longer require licenses to sell tools in China, rescinding security-driven curbs imposed weeks prior.

Siemens confirmed restoring full customer access, while Synopsys and Cadence are resuming operations. The policy shift follows the London trade deal, where the U.S. agreed to permit sales of EDA software, ethane, and jet engines in exchange for China expediting critical mineral exports for renewable energy and aviation sectors.

EDA software is foundational to semiconductor manufacturing, enabling development of AI processors and everyday electronics. Historically treated as untouchable national security tools, these export controls now serve as bargaining chips—reflecting a strategic pivot from unilateral tech containment to negotiated trade diplomacy.

The move reassures U.S. tech firms eyeing China’s market but draws criticism from security advocates warning of long-term risks. It remains unclear whether this marks a lasting precedent or tactical concession in ongoing tech-trade negotiations.