The U.S. is open to providing more semiconductor technology to China as part of ongoing trade talks between the two countries in London. According to the Wall Street Journal, President Trump has authorized Secretary of the Treasury Scott Bessent with the power to remove export controls on China that include semiconductor software, aircraft parts, and ethane. The removal of the export controls will act as a bargaining chip in order to secure a better deal.
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U.S. and China Exchange Export Controls
Earlier this year, China restricted access of rare earths to the U.S. The country holds a near-monopoly on the minerals, which are crucial in the production of semiconductors, cars, and aircraft. The U.S. responded by restricting semiconductor design software to China from companies like Cadence Design Systems (CDNS) and Synopsys (SNPS). Both stocks are trading higher on the potential removal of export controls.
