Introduction
The article published by CNN on May 28, 2025, claims that the Trump administration has restricted some U.S. companies from exporting chip design software to China. As semiconductor technology lies at the heart of the global tech race, users are especially interested in the implications of these actions—particularly whether they will incentivize China to accelerate development of homegrown semiconductor alternatives. This fact-check explores the scope and accuracy of the reported restrictions as well as potential fallout.
Historical Context
For years, the United States and China have been engaged in a strategic competition over technological supremacy, especially in sectors like artificial intelligence, 5G, and semiconductors. Beginning in 2018, the U.S. imposed waves of tariffs and technology export restrictions targeting Chinese firms like Huawei and ZTE. In turn, China invested heavily in domestic chip makers like SMIC. The Biden administration largely maintained the tough-on-China stance, and the 2025 Trump administration has reportedly intensified this approach by placing new limits on specific sectors deemed strategically sensitive, including chip design software pivotal for advanced semiconductor development.
Fact-Check of Specific Claims
Claim #1: The Trump administration has cut off some U.S. companies from selling chip design software to China.
This claim is largely accurate. According to a May 27, 2025, report by the Financial Times, the U.S. government has introduced new restrictions targeting electronic design automation (EDA) software exports to China. While Commerce Department officials declined to name companies, individuals familiar with the matter identified Cadence, Synopsys, and Siemens EDA as affected. Siemens itself confirmed to CNN that it was informed by the U.S. government about these new controls. Although Cadence and Synopsys did not respond for comment, Reuters and Bloomberg have independently corroborated the nature and timing of these restrictions.
Source: Financial Times,
Bloomberg
Claim #2: The US lowered tariffs on Chinese imports to a minimum of 30% from 145%, and China lowered its tariffs on US goods to a minimum of 10% from 125%.
This claim is misleading without crucial context. There is no public confirmation from the U.S. Trade Representative or Chinese officials that such drastic tariff reductions—from 145% and 125% respectively—actually occurred. Those percentages far exceed historical tariff levels even at the height of previous trade tensions. For example, during the 2018–2019 trade war, U.S. tariffs on targeted Chinese goods reached 25%, and China’s retaliatory tariffs topped out around 30%. No credible source confirms a rollback from triple-digit tariff figures. The numbers appear exaggerated.
Source: U.S. Trade Representative,
Peterson Institute for International Economics
Claim #3: Sales to China of jet engine technology and certain chemicals were also halted.
This statement is plausible but unverified. The article attributes this claim to The New York Times, yet the referenced NYT report does not provide specific regulatory documentation or confirmation from the Commerce Department. While past actions have included restrictions on aerospace components and specialty chemicals tied to military usage, there is insufficient contemporary evidence confirming a new 2025 halt in sales. Without official listing or confirmation, this claim remains speculative.
Source: The New York Times
Claim #4: These restrictions will accelerate China’s push to develop homegrown chip design alternatives.
This claim is speculative but credible based on past behavior. When the U.S. previously sanctioned Huawei and restricted access to foreign semiconductor fabrication tools, China responded by ramping up state-sponsored efforts to develop indigenous alternatives. Chinese firms like SMIC, HiSilicon, and EDA players such as Empyrean Technology have grown more prominent as a result. While there is no official statement from Beijing directly confirming an acceleration due to this particular restriction, historical patterns and economic strategies outlined in China’s “Made in China 2025” plan strongly suggest such a pivot.
Source: Center for a New American Security,
Nikkei Asia
Conclusion
The CNN article accurately reports that the Trump administration has imposed new export restrictions targeting chip design software to China, with Siemens confirming its receipt of the updated rules. However, the article contains inflated, unverified figures regarding tariff reductions and lacks clarity in confirming the suspension of jet engine technology sales. While the claim that these restrictions may accelerate China’s homegrown semiconductor efforts is based on precedent, it remains speculative without current governmental confirmation. Overall, the article is mostly accurate in detailing new policy actions but includes exaggerated or unverified claims that cloud the reader’s understanding of the broader picture.
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Original Article
Read the full article at:
https://www.cnn.com/2025/05/28/economy/trump-us-companies-china
