In a significant development in US-China trade relations, the United States has lifted restrictions on the export of chip-making software to China, following China’s agreement to increase exports of key minerals to America. This decision, reported by Bloomberg, allows major Electronic Design Automation (EDA) software providers—Synopsys, Cadence, and Siemens—to resume operations in China, where they collectively dominate over 90% of the market. The move comes after a trade agreement signed on June 25, which was preceded by high-level meetings between US and Chinese officials in London earlier in June. The Chinese Ministry of Commerce confirmed that China would approve export applications for controlled items, while the US would reciprocate by lifting restrictive measures. US Treasury Secretary Scott Bessent expressed optimism about the increased flow of Chinese mineral and magnet exports, emphasizing the importance of rare earth magnets in the deal. Meanwhile, shares of China’s Empyrean Technology, a key chip-making software supplier for Huawei, fell by 3%, reflecting the competitive pressures in the domestic market. The trade agreement marks a de-escalation in tensions, though observers remain cautious about its long-term sustainability, given the US’s efforts to diversify its key mineral sources. Countries like India, Brazil, and Australia are emerging as alternative suppliers, potentially challenging China’s dominance in the rare earth sector. The deal underscores the complex interdependence between the two nations in critical technology and resource sectors, even as strategic competition persists.