U.S. Revokes Export Licenses, Adds New Rules For China Shipments

The U.S. Commerce Department has revoked existing export licenses and imposed new restrictions on shipments to China, according to Reuters. Companies must now obtain licenses before exporting critical goods, including electronic design automation software. The electronic design automation software makers affected include Cadence, Synopsys, and Siemens EDA. It is uncertain whether the new restrictions are intended to strengthen the U.S. position in ongoing trade negotiations with China. The Commerce Department stated it is reviewing exports of strategic importance and has, in some cases, suspended licenses or added new requirements during the review. Shares of Cadence and Synopsys dropped on Wednesday by 10.7% and 9.6%, respectively.