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    Are we rallying, or overcorrecting?

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    Chip software makers say US restrictions on sales to China lifted

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    Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The three largest developers of chip design software have said the US has removed recent restrictions on sales in China, as a trade deal between Washington and Beijing takes effect.Siemens, Synopsys and Cadence, which between them account for the majority of China’s market for so-called electronic design automation software, said they had been notified by the US government that export restrictions introduced in May were no longer in place.Siemens said in a statement on Thursday that it had “restored full access to software and technology” under the controls and resumed “sales and support to Chinese customers”.US-based Synopsys and Cadence said the measures had been “rescinded”.“We are in the process of restoring access to our software and technology to affected customers in compliance with US export laws,” Cadence told the Financial Times. Synopsys also said in a statement it was “working to restore access”.The announcements come a week after the US and China signed a trade deal that reduced tariffs from levels as high as 145 per cent in April. The limitations on software used to design semiconductors were put in place by Washington as part of a package of restrictions that also affected exports of jet engines and ethane.They were introduced after China clamped down on shipments of rare earths, a crucial manufacturing ingredient in electronics and defence equipment, as part of its retaliation against US tariffs.The Financial Times previously reported that the White House was looking at easing chip restrictions if Beijing sped up rare-earth exports, ahead of talks in London that culminated in the deal being signed last week.China last Friday said the two sides had “further confirmed” the details of the London talks.Siemens EDA, Synopsys and Cadence produce almost all of the world’s electronic design automation software, used by designers and manufacturers to develop and test blueprints for new generations of semiconductors.The three companies account for close to 80 per cent of China’s EDA market, according to Shanghai-based consultancy ICWise Research, despite Chinese efforts to produce homegrown cutting-edge chips.While the EDA sector accounts for just 1.6 per cent of the global $600bn semiconductor industry, it serves as a critical bottleneck in the supply chain. The US has for years placed limitations on exports of chips and chipmaking equipment on national security concerns.The FT reported last month that China’s antitrust regulator had delayed approval of a $35bn merger between Synopsys and engineering software developer Ansys, after Washington’s move to ban US chip design software sales to China. More

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    Can Indonesia Afford Prabowo’s Free School Lunch Program?

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    Indonesia’s president promised free meals for every student in the country. But unemployment is rising, and some analysts say he’s making matters worse.Nina Megayanti used to think she had it all.For years, she had a comfortable life in Jakarta, Indonesia’s capital, eating out with friends, taking weekend trips abroad and making house payments. But in 2023, she was laid off from her marketing job as the economy slowed. She was out of work for more than a year, lost her housing deposit and went through almost all of her savings.Millions of other Indonesians are similarly desperate. The International Monetary Fund has warned that the country’s unemployment rate will rise this year to become the second-highest in Asia, exceeded only by China’s.But the government says the economy is doing fine, pointing to its annual growth rate of about 5 percent. Since taking office in October, President Prabowo Subianto has been focused on fulfilling campaign pledges, including a nationwide free school lunch program and affordable housing. He has also set up a new sovereign wealth fund.To bankroll these projects, he has redirected the equivalent of billions of dollars in government funds, slashed budgets and demanded austerity from the ministries of public works, health and education, among others. He has also fired thousands of government contractors. But Indonesia’s economy is heavily dependent on state spending, and critics say Mr. Prabowo’s priorities are misplaced.“The government is in denial about the economy,” said Awalil Rizky, an economist at the Bright Institute, an independent think tank in Jakarta. “The employment figures are evidence that the conditions are indeed not good.”The I.M.F. has projected that Indonesia’s unemployment rate will rise to 5 percent this year, from 4.9 percent in 2024. And on Tuesday, the government lowered its estimate for economic growth in 2025 to about 5 percent, from 5.2 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Pakistan pitches Nobel, crypto and rare earths to woo Trump

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    The mad dash for trade deals

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