Uhoh: China may be blocking Ansys + Synopsys

According to a couple of news outlets (here and here, for example), Chinese regulators have now blocked Synopsys’s acquisition of Ansys because, the reports say, the US banned US EDA makers from selling in China. Shares of Synopsys and Ansys are both down on the news.

It’s unclear whether the Chinese regulators announced this before, during or after the US and China reportedly reached an agreement on trade and tariffs earlier this week (and we still don’t have details of what that agreement encompasses). A couple of news outlets yesterday said that the EDA ban might be lifted as part of that deal, and others said earlier in the week that some access to support portals had been eased, though no sales were being made.

Today’s reports mention that the Chinese regulators could perhaps walk back their block of Ansys+Synopsys if Synopsys can provide “workable remedies” — but to what? Deal related or ban related? Or are they daring Synopsys to go ahead with the deal with Ansys so that there can be some sort of other ban of Synopsys technology in China? To boost local Chinese makers of EDA tools? That’s pretty devious, but perhaps it’s part of a long game.

It’s a muddle. Neither Ansys or Synopsys have said anything publicly about today’s news. I’ll update if they do.