The U.S. has taken steps to restart ethane exports to China following a recent trade agreement. On Wednesday, letters were sent to major producers Enterprise Products Partners and Energy Transfer, lifting a license requirement that had been imposed just weeks earlier. This move signals progress in the ongoing trade discussions between the two countries.

Earlier this year, the U.S. had restricted ethane and several other exports to China amid accusations that China was delaying shipments of rare earth minerals critical to industries such as automotive manufacturing. The latest action comes after the U.S. and China resolved issues related to rare earth minerals and magnets shipments last week.

Last week, the Commerce Department began easing the restrictions by notifying ethane producers and traders, including Satellite Chemical USA and Vinmar International, that they could load ethane on vessels bound for China but were not authorized to unload the shipments there without further approval.

Ethane shipments to China had stopped in June following the imposition of the license rule, dropping from 257,000 barrels per day in May, according to tracking data. Nearly half of U.S. ethane exports, which is derived from shale gas and mainly used as a raw material in petrochemicals, are sent to China. The suspension of shipments was expected to negatively impact both U.S. producers and Chinese petrochemical companies.

Chinese firms prefer ethane as a feedstock because it is more cost-effective than alternatives like naphtha. Meanwhile, U.S. producers rely on Chinese demand for natural gas liquids, especially as domestic supply exceeds consumption.

As of Wednesday, at least eight ships were en route to China after being delayed along the U.S. Gulf Coast since June due to export restrictions. Some vessels that usually travel between the U.S. and China diverted to other markets, such as India, during the export halt.