Multiple companies have disclosed receiving orders from the Bureau of Industry and Security to stop exporting to China.

Multiple companies recently revealed that they had received notices from the Bureau of Industry and Security (BIS) regarding new restrictions on specific exports to China. Among these companies were two semiconductor design firms, Synopsis and Cadence, and an oil company called Enterprise Products Partners.

Synopsis announced in an SEC filing that it was suspending its financial projections after receiving a letter from BIS. The company disclosed that they had to halt their guidance for the third quarter and the entire 2025 fiscal year due to the new export restrictions related to China. Cadence also reported that they had received a letter on May 23 from BIS, informing them of the need for a license to export electronic design automation software and technology when dealing with parties in China or Chinese military end-users.

Enterprise Products Partners, a prominent gas, oil, and petrochemical provider in North America, was similarly affected by the BIS letter. The company stated that they were required to obtain a license for shipping specific items to China or Chinese military end-users, notably ethane and butane products. BIS expressed concerns about the potential use of these items in China’s military-civil fusion strategy, prompting Enterprise Products Partners to reevaluate its procedures and internal controls regarding these products.

The company is in the process of determining whether they can secure the necessary BIS license for transactions involving covered ethane and butane products. Moreover, Enterprise Products Partners is exploring alternative markets and considering how these new restrictions might indirectly impact U.S. crude oil and natural gas production and prices.

The letters from BIS are part of a broader effort by the agency to restrict the export of goods deemed strategically significant to China. These restrictions are imposed to mitigate the risk of certain items being used or diverted for military purposes in China or by Chinese military end-users. Both Synopsis and Cadence are working closely with BIS to gain further clarification on the new requirements, as they assess how these regulations will affect their businesses and financial outcomes.

While the precise implications of these restrictions remain unclear, these companies are actively engaging with BIS to navigate the evolving regulatory landscape. The ongoing dialogue with BIS will be critical in helping these companies comply with the new rules while continuing to drive their global business operations forward.