The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.

The U.S. Commerce Department on Wednesday notified companies including Enterprise Products Partners and Energy Transfer that prior restrictions imposed in May and June were no longer in effect. The decision follows a bilateral resolution last week over Chinese exports of rare earth minerals and magnets, a key point of friction in recent months.

Ethane exports to China had fallen to zero in June after Washington imposed new licensing rules amid concerns over Beijing’s trade practices. The resumption allows stalled cargoes to proceed, with at least eight tankers en route to China from the U.S. Gulf Coast, according to ship tracking data.

Samantha Hartke, analyst at Vortexa, said the move signalled a return to “business as usual” and projected that ethane exports would rebound to a seasonal average of 240,000 barrels per day in July. That compares to 257,000 bpd recorded in May.

Ethane, a by-product of U.S. shale gas production, is widely used in China’s petrochemical industry as a cheaper alternative to naphtha. Chinese firms are major buyers, and the abrupt halt had raised concerns among U.S. producers faced with oversupply in the domestic market.

The U.S. Department of Commerce had initially eased restrictions last week by allowing loading of cargoes destined for China, but barred discharge without additional authorisation. Wednesday’s notice removes that condition, clearing the backlog of delayed shipments.

Vinmar International and Satellite Chemical USA, also named in the earlier correspondence, did not comment on the latest developments. Requests for comment from The White House and Commerce Department were not immediately answered.

The U.S.-China trade relationship remains under pressure, but the ethane development adds to a series of narrowly focused truces reached in recent weeks. China is the top destination for U.S. ethane exports, accounting for roughly half of total outbound shipments.

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