The U.S. lifting restrictions on ethane exports to China is a significant event, which is of great significance to the economic and trade relations between the two countries and the development of related industries. The details are as follows:Background of the restriction: From late May to early June 2025, the U.S. government imposed restrictions on a number of exports to China, including ethane, on the grounds that China restricted the export of rare - earths. This led to a sharp drop in U.S. ethane exports in June, and many ethane - carrying ships were stranded in ports.Process of lifting the restriction: On June 25, 2025, the U.S. Department of Commerce signaled a relaxation by allowing U.S. companies to load ethane onto ships bound for China, but prohibited unloading without further authorization. On July 2, the U.S. government sent a letter to two major U.S. ethane producers and exporters, Enterprise Products Partners and Energy Transfer, notifying the cancellation of the relevant restrictions on ethane exports to China, revoking a restrictive license requirement imposed a few weeks ago.Impact of lifting the restriction: This move clears the way for the resumption of U.S. ethane exports to China. As about half of U.S. ethane exports are sold to China, the lifting of the restriction is beneficial to the interests of relevant enterprises in both the U.S. and China. It is a positive signal for the truce in the Sino - U.S. trade war, indicating that the economic and trade relations between the two countries are gradually easing. After the restriction was lifted, at least 8 ships that had been stranded on the U.S. Gulf Coast in June sailed to China.
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