The UK government declined a Chinese firm’s acquisition of electronic design automation (EDA) software company Pulsic on August 17, citing potential threats and the violation of the National Security and Investment Act 2021. Detailing the reason for their decision, the UK government said that Pulsic owns EDA software that can be used for military purposes. The firm intent on making the purchase, Super Orange HK, has been invested in by mainland Chinese firm Shanghai Hejian Industrial Software Group, which focuses on EDA software. Super Orange HK was founded in 2021 by members of the Shanghai-based company. This is the second time the UK has called off a merger or acquisitions from a Chinese firm by citing the act, which took effect in April 2021. The act covers 17 fields, including nuclear energy, AI, telecom, and semiconductors. The US banned the exportation of EDA software used to produce 3nm and more advanced chips to China on August 12, hindering the country’s progress towards more advanced chipmaking. [Caixin, in Chinese]