Trump Administration Halts US Companies' Sales to China

The Trump administration is reportedly requesting certain U.S. firms to cease the sale of software utilized for semiconductor design China .

The U.S. aims to make it harder for China to acquire semiconductors with the intention of curbing its progress in artificial intelligence.

The Commerce Department told CNN On Wednesday, it involves "examining exports that have significant strategic importance to China."

"In certain instances, Commerce has either put existing export licenses on hold or introduced extra licensing conditions during the ongoing evaluation," a spokesperson informed CNN.

The firms instructed to stop sales to China consist of Cadence, Synopsys, and Siemens EDA, as reported by the Financial Times. reported It's uncertain whether all "electronic design automation groups" were sent a letter by the department.

Christopher Johnson, a previous CIA China analyst, conveyed to the Financial Times that the recent export restrictions highlighted the "inherent vulnerability of the tariff agreement achieved in Geneva." He explained that since both parties aim to maintain and exhibit the strength of their leverage, there’s an ever-present danger that this temporary cease-fire might collapse even during the 90-day suspension period.

Trump's tariffs were largely paused By a federal court order, including the significant tariffs placed on imports from China. During President Trump’s term, his administration was deeply involved in an aggressive trade conflict with China until both parties consented to a provisional 90-day ceasefire. This reduction in tensions eased concerns for American shoppers who depended on products from China but were facing significantly higher costs as a result of the 145% tariff levied against Chinese goods by the U.S.

The decision did not impact tariffs imposed by the Trump administration under various statutes, such as those on steel, aluminum, and automobiles.

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Liu Pengyu, a spokesman for the Chinese Embassy in the U.S., told CNN that “China firmly opposes the US’s overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China.”

“China will keep a close eye on relevant developments, and take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies,” he added.