China Approves Synopsys’ $35B Ansys Deal Amid Easing Trade Tensions

China’s State Administration for Market Regulation (SAMR) has granted conditional approval to Synopsys’ (NASDAQ: SNPS) $35 billion acquisition of Ansys (NASDAQ: ANSS), removing the final major regulatory barrier for the U.S. chip-design software leader. The approval comes with stipulations: Synopsys must not terminate existing customer contracts or deny renewal requests from Chinese clients.

This regulatory green light follows a thaw in U.S.-China trade tensions. In June, both nations agreed to reduce import tariffs, signaling a shift toward economic cooperation. Earlier this year, the Ansys deal faced delays due to escalating trade friction, but recent developments—such as Washington easing export restrictions on chip-design software and materials—have helped reopen China’s market to U.S. tech firms. In return, Beijing has loosened its export controls on rare earth elements, vital to the global tech supply chain.

The merger had already secured approvals from regulators in the U.S., European Union, and the UK, leaving China as the last major hurdle. Now cleared, the acquisition enables Synopsys to strengthen its dominance in the global electronic design automation (EDA) market.

Synopsys shares have seen gains in recent sessions as investor confidence grew following the U.S. export policy shift. The approval marks a significant step in the broader recovery of tech cooperation between the world’s two largest economies, benefiting both global semiconductor innovation and strategic trade relations.

This move not only consolidates Synopsys’ position in chip-design software but also signals potential regulatory easing for other cross-border tech deals moving forward.