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US Cos. May Be Allowed To Sell Non-sensitive Goods To Huawei: Report


The U.S. government plans to soon issue licenses that will enable some American companies to supply non-sensitive goods to Chinese telecom giant Huawei, the New York Times reported, citing people familiar with the matter. Huawei is the world's largest telecom equipment maker.

The move by the Trump administration comes as the U.S. and China are set to resume their next round of high-level trade talks this week and could ease tensions between the two countries, according to the NYT report.

A Chinese delegation led by Vice Premier Liu He is currently in Washington, DC for the trade talks.

The Trump administration blacklisted Huawei in early May on national security grounds. The ban was primarily aimed at keeping equipment made by the Chinese company out of the next generation of wireless network, 5G.

Huawei and another Chinese company ZTE are now major players in the 5G market as they manufacture and sell telecom equipment for 5G networks at competitive prices.

The U.S. has serious concerns about the security risks posed by Chinese technology companies, including Huawei and ZTE. Intelligence agencies are concerned that Huawei and other Chinese companies may be beholden to the Chinese government or the ruling Communist Party, raising the risk of espionage.

The blacklisting made it difficult for Huawei to sell products for which it relied on parts from U.S. suppliers.

However, the Trump administration later temporarily eased the restrictions on Huawei, allowing it to do business with American companies for three months. The move was aimed at helping support existing Huawei networks and devices around the world.

At the G-20 summit in June, President Donald Trump said he would allow American companies to sell their products to Huawei that do not pose national security concerns.

However, the New York Times reported that no licenses have since been issued, possibly indicating that the Trump administration was withholding them as leverage in trade talks.

The ongoing trade war has dragged on for more than a year now. U.S. President Donald Trump said on Thursday that he will meet with Chinese Vice Premier Liu He on Friday, with the announcement raising hopes about a positive outcome from the trade talks.

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